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Qualcomm: Paul Jacobs steps down as chairman

10 March 2018

Today, however, the companies have made announcements: Broadcom has sent Congress a letter saying that possible hostile takeover is not a threat to United States national security, while Jeffrey Henderson was brought on by Qualcomm as an independent board chairman. He will remain on as a director.

The soap opera that is Broadcom's unsolicited attempt to purchase Qualcomm took yet another surprise turn this morning as Qualcomm's Paul Jacobs-son of founder Irwin Jacobs-said he will relinquish his title as board chairman to an independent director.

The Board has discontinued the role of Executive Chairman, which was established in 2014 as part of a leadership transition plan, based on its belief that an independent Chairman is now more appropriate for Qualcomm.

Significance: Broadcom nominated members for Qualcomm's board, which was supposed to go up for a vote this week before the annual meeting was delayed due to the CFIUS investigation.

The departure from the executive chairman position is happening at a time when Broadcom is stepping pressure on USA authorities to receive support for its $117 billion bid for Qualcomm, a chipset company based in San Diego.

Tom Horton, Lead Director, said, "We are unanimous in our view that Jeff is the ideal choice for this role based on his deep financial, operational, and global experience as well as his strong stockholder orientation".

The tender offer is now scheduled to expire on March 16, 2018, unless extended or earlier terminated, in either case pursuant to the terms of the Purchase Agreement. Henderson has been on Qualcomm's board since 2016, but he's not tied to the company and can help steer decision making in the right direction that's in the best interest of both the company and its shareholders.

This excludes 21,239 shares tendered pursuant to guaranteed delivery procedures that have not yet been delivered in settlement or satisfaction of such guarantee.

Qualcomm: Paul Jacobs steps down as chairman