Circuits sizzled as Broadcom named 11 directors it wants to place on the board of Qualcomm, which rejected its $103 billion bid last month. Fred Katayama reports.
Circuits sizzling between two chipmakers. Broadcom taking its first step Monday toward a hostile bid for Qualcomm. It named 11 directors it wants to place on the mobile chip giant's board. The move comes after Qualcomm rejected Broadcom's $103 billion bid last month, saying the offer undervalues the company. Qualcomm lashed back, calling Broadcom's move a "blatant attempt to seize control of the Qualcomm board in order to advance Broadcom's acquisition agenda." Broadcom's CEO Hock Tan said his company prefers to engage in talks with Qualcomm but took this step so Qualcomm shareholders can have directors who better serve their interests. The list includes a former president of the mobile networks business group of Nokia. That slate will be heavily scrutinized, for the nominees will have to oversee the company until any deal with Broadcom closes. Broadcom didn't disclose any details of a new offer. Shares of both companies rose at the start of trading Monday.