The stock of QUALCOMM, Inc (NASDAQ:QCOM) closed at $64.30 losing 0.66% in yesterday’s trading session. The stage for a bitter proxy battle has already been set up between Qualcomm and Broadcom (NASDAQ:AVGO).That was after the smartphone chip maker proceeded to reject all the 11 persons that had been nominated by Broadcom for its board. It was unexpected and the news has left a lot of people confused considering that Qualcomm seemed to have been leading Broadcom on in relation to the matter.
It was on its most recent statement that Qualcomm came out clearly to spell out its stand asserting that it would not in an manner back any candidates proposed by either Silver Lake Partners or Broadcom. It insisted that they had pretty little to offer in terms of expertise and also had no incremental skills.
A lot of people familiar with the matter are starting to view Qualcomm from a completely new perspective. In fact some of them have come forward to term the company insensitive and one that can’t be trusted.
Not everyone is against the move by the company since there are others that believe that the company was just in line with doing what was appropriate for its diverse business. According to them, the matter at hand was a sensitive one and it required the company to consider so much in terms of the guidelines that would help take its business operations to a completely new level.
The chipmaker has in the recent times been considering the aspect of fending off Broadcom’s unsolicited $103 billion takeover attempt though it admits that it is a rather challenging affair. Qualcomm is against any move that might result in undervaluing the company and any such moves will be knocked off even without thinking.
A person familiar with the recent developments but who also wanted his identity kept anonymous said, “Broadcom Ltd. proposes that Qualcomm shareholders elect its 11-person slate and then enlarge the board and reappoint three current Qualcomm directors — but not the current chairman or chief executive — to “ensure continuity.”