Broadcom Busily Works on Enemy Takeover of Qualcomm

Qualcomm has rejected a Takeover bid from Broadcom. But now it's getting really interesting. Because the latter obviously feel challenged: They have proposed 11 candidates for the Supervisory Board. If elected to the Supervisory Board in March 2018, they would of course vote for a takeover by Broadcom. It seems to be about nine men and two women with experience in the tech industry. As a result, Broadcom should also plan a new, even higher takeover offer in March. An offer that Qualcomm can not refuse?

In the second attempt Broadcom would have even better chances to secure Qualcomm. Broadcom then insists that a takeover is in the interest of shareholders: " We have received feedback from many Qualcomm shareholders. They want Qualcomm to sit down with us "affirms Hock Tan, CEO of Broadcoms. According to Tan, shareholders are disappointed with Qualcomm's leadership. With the new nominations for the supervisory board, one gives those an opportunity to express their disappointment.

Broadcom apparently received support from Silver Lake, an international holding company, in its selection of candidates. However, this move should also come up against much criticism: nominated by Broadcom for the Supervisory Board candidates would not only endorse the takeover, but also obtained a lot of power at Qualcomm until the transaction actually went on stage.

There remains the question of whether this takeover would even be waved through the authorities. Broadcom expects the deal to be approved within a year. Qualcomm, on the other hand, raised doubts. Let's start from a much longer and uncertain procedure.

Now you may be curious to see what happens next: With Qualcomm you should watch Broadcomm's strategy with suspicion.

(via Reuters)