Broadcom Scales Back Qualcomm Board Challenge to Simple Majority
Broadcom Ltd. slashed the number of board seats it was attempting to win at Qualcomm Inc. from 11 to six on Tuesday, reports Reuters (Feb. 13, Roumliotis), saying this would enable Qualcomm's shareholders to push the U.S. chip maker toward a sale while ensuring continuity. The move came following Broadcom's Monday meeting with proxy advisory firm ISS 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. "Broadcom said the change would let Qualcomm stockholders direct a simple majority of the board to negotiate a deal," concludes Reuters, "while also ensuring that the remaining five directors who are familiar with the company continue to oversee it."
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