Broadcom, its offer for Qualcomm rejected, launches hostile takeover attempt

Broadcom began a hostile takeover bid for Qualcomm Monday, nominating 11 alternative candidates to Qualcomm's board of directors.

Shareholders will vote to support either Qualcomm's or Broadcom's board candidates, with the results expected to be announced at Qualcomm's annual meeting March 6.

Broadcom did not raise its $70 per share offer price, which values Qualcomm at $103 billion. Qualcomm's board previously rejected the offer as too low.

But Broadcom could still increase its offer before the annual meeting, making it more attractive to Qualcomm's shareholders.

Qualcomm said Monday that the Broadcom offer undervalues Qualcomm's growth prospects in the internet of things, 5G, automotive and data center networking markets.

Broadcom CEO Hock Tan said Qualcomm's shareholders want the companies to talk about the acquisition proposal, but so far Qualcomm has ignored Tan's attempts to begin a dialogue.

"The nominations give Qualcomm stockholders an opportunity to express their disappointment with Qualcomm's directors and their refusal to engage in discussions with us," Tan said in a statement.