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Qualcomm woos shareholders with promise of earnings boost

Bloomberg Published on Wed, Jan 17, 2018 / 11:32 AM GMT+8

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(Jan 17): Qualcomm Inc launched its public defense against the US$105 billion ($139 billion) hostile takeover attempt by Broadcom, asking shareholders to have confidence in management’s strategy and push aside the suitor.

In a letter to shareholders Tuesday, the chipmaker asked them to re-elect the existing board at its annual meeting on March 6. Broadcom has introduced its own slate of board candidates in an effort to consummate what would be the biggest ever technology industry deal.

Persuading shareholders that efforts to expand into new areas such as computing and restore a licensing business beset by legal challenges will pay off is crucial to Qualcomm’s ability to survive as an independent company. The San Diego, California-based company is also arguing that Broadcom’s bid will struggle to pass antitrust scrutiny.