Broadcom HQ Move Will Happen Regardless of ‘Corporate Tax Reform,' Says CFO
Broadcom will follow through with its decision, announced last month at the White House (see 1711020069), to move co-headquarters to Delaware from Singapore “whether or not there is corporate tax reform” enacted in the U.S., said Chief Financial Officer Tom…
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Krause on a Wednesday earnings call. Broadcom wants to make the move "in a manner intended to be tax-free to shareholders," said Krause. “We are confident that our shareholders will support this move,” but the "final form and timing" of the "re-domiciliation" and the shareholder vote to approve it “will depend in part on tax reform efforts” in Congress, he said. Broadcom also remains determined to buy Qualcomm for $70 a share, despite the target board’s rejection of the offer last month (see 1711130031), said Krause. Broadcom told Qualcomm earlier this week of its plan to nominate a “highly qualified” slate of 11 directors to run for seats on the Qualcomm board at Qualcomm’s next annual meeting in March (see the personals section of the Dec. 6 issue of this publication), he said. Packing the board with directors friendly toward approving Broadcom’s buy would be a big step toward a hostile Qualcomm takeover, but Krause said “it remains our strong preference to engage in a constructive dialogue with Qualcomm." Broadcom is confident it could complete a Qualcomm buy within a year after signing a “definitive agreement” on the acquisition and that the combined company would become “a global communications leader,” he said.