Broadcom Secures Debts Worth $100 Billion To Finance Proposed Qualcomm Deal

Broadcom Scales Back Qualcomm Board Challenge to Simple Majority

Broadcom Scales Back Qualcomm Board Challenge to Simple Majority

By lowering its proposed nominees from 11 to six members, Broadcom is still pushing for a majority presence on the Qualcomm board, but it will now be able to claim a more balanced approach to pushing the merger through, one that benefits from "continuity" and a more seamless transition.

By way of a quick recap, Broadcom has been trying to acquire its chip maker rival since November, though Qualcomm rejected the original $103 billion offer.

Chipset company Broadcom will seek the election of six, rather than 11, nominees to the Qualcomm board of directors. Last week, Broadcom raised its offer for San Diego-based Qualcomm to $82 a share from $70, and called the price its "best and final offer".

On Tuesday, Broadcom said it would nominate six directors to the Qualcomm board at that company's annual shareholders meeting, slated for March 6.

It must be noted that Qualcomm has voiced its concerns about Broadcom securing funds for its proposed $121 billion transaction, saying that it considerably underrates the company.

Qualcomm responded on Thursday that unless Broadcom will agree to do whatever is necessary to ensure the deal closes, a commitment to divestitures without restrictions often referred to as "hell or high water", it would have to be extremely clear and specific about what actions it would refuse to take.

"In addition, they have welcomed our willingness to provide for appropriate continuity on the Qualcomm board, and have also expressed a desire for a definitive mechanism of achieving such continuity", he added.

Broadcom's proposed directors are Samih Elhage, David Golden, Veronica Hagen, Julie Hill, John Kispert and Harry You.

Qualcomm's board has twice rejected Broadcom's offier, which was sweetened by $12 per share earlier this month.

Qualcomm's shares were up marginally premarket at $65.69, while Broadcom's stock dipped 0.5 percent to $243.18. Both stocks trade on the Nasdaq.