Qualcomm Inc. (QCOM) continued its PR war with hostile suitor Broadcom ltd. (AVGO) this week, releasing a flurry of letters, press releases and videos. The mobile chipmaker is fending off Broadcom's unsolicited offer while also girding for a showdown with the rival chipmaker at its March 6 annual meeting.
In a letter to shareholders on Thursday, the company took a shot at Broadcom's decision to lower its takeover bid from $82 to $79 per share after Qualcomm increased the price of its $45 billion takeover of NXP Semiconductors NV (NXPI) . "By lowering its proposal to $79.00 per share, Broadcom has made an inadequate proposal even worse," Qualcomm said.
Shares of Qualcomm dropped 1.9% to $62.18 on Thursday. In early trading on Friday, shares were up 0.3%.
As its shareholder vote approaches, Qualcomm also released a two-minute video that featured its directors and extolled the virtues of its board, such as the short-tenure and diverse backgrounds of members. Action Alerts Plus holding Broadcom has nominated 6 directors for Qualcomm's board, which would give it a majority if it can convince investors to vote for its slate. Even with a minority position on the board, Broadcom could position itself for a future deal.
Earlier in the day, Qualcomm issued a press release warning of the "significant antitrust risk" that Broadcom's takeover bid entails, citing an article published by a trade group that featured "leading antitrust experts" from China, Korea, the E.U. and the U.S. "With respect to likely review timing, recent deals suggest that the regulatory approval process is likely to take 18+ months," the article stated.
TheStreet's Executive Editor Brian Sozzi sums up this tech saga below.
OMG more Qualcomm vs. Broadcom stuff �������� https://t.co/xvK7acbjMv— Brian Sozzi (@BrianSozzi) February 22, 2018
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