Broadcom[1] cut the number of board seats it was trying to win at Qualcomm[2] to six from 11 on Tuesday, saying this would let Qualcomm shareholders push the US chipmaker toward a sale while ensuring continuity.
The move came following Singapore-based Broadcom's meeting with proxy advisory firm ISS on Monday and concern from some Qualcomm shareholders that replacing the company's entire 11-member board could create uncertainty during the time it would take to complete a combination of the two companies.
The move on board seats comes a day ahead of planned talks between the semiconductor companies to discuss Broadcom's $121 billion (roughly Rs. 7.8 lakh crores) cash-and-stock acquisition offer[3], which will be their first such discussion.
Broadcom said the change would let Qualcomm stockholders direct a simple majority of the board to negotiate a deal while also ensuring that the remaining five directors who are familiar with the company continue to oversee it.
Broadcom's six nominees are Samih Elhage, David Golden, Veronica Hagen, Julie Hill, John Kispert and Harry You. The company said it would withdraw its offer if it was not accepted by Qualcomm's executives or unless its six nominees were elected at Qualcomm's shareholder meeting scheduled for March 6.
Qualcomm offered no comment.
The takeover battle is at the heart of a race to consolidate the wireless technology equipment sector, as smartphone makers such as Apple[4] and Samsung Electronics[5] use their market dominance to negotiate down chip prices.
Broadcom is mainly a manufacturer whose connectivity chips are used in products ranging from mobile phones to servers. San Diego-based Qualcomm primarily licenses its technology for the delivery of broadband and data, a business that would significantly benefit from the rollout of...