Qualcomm's Proposed Process is an Effort to Delay March 6, 2018 Annual Meeting

SAN JOSE, Calif., Feb. 26, 2018 — (PRNewswire) —  Broadcom Limited (NASDAQ: AVGO) ("Broadcom") today issued the following statement:

Broadcom has and will always welcome genuine engagement with Qualcomm.  Broadcom does not believe that the process outlined by Qualcomm today is designed to lead to a prompt agreement.  Qualcomm's disingenuous process defers the question of price, even after Qualcomm's Presiding Director Tom Horton last week publicly stated that the Qualcomm board views Broadcom's proposed price as "not even close."

Broadcom believes Qualcomm's sudden request to enter into an NDA is a result of Qualcomm finally beginning to recognize the will of its stockholders.  While Broadcom repeatedly attempts genuine engagement with Qualcomm, including having proposed constructive solutions to Qualcomm's concerns and having demonstrated flexibility at meetings on both February 14 and February 23, Qualcomm has only feigned engagement.

Broadcom's proposal has never been conditioned on due diligence and Broadcom continues to be prepared to move forward immediately, without diligence.  In short, there is no cause to delay the Qualcomm annual meeting.  Broadcom would be happy to provide confirmatory reverse due diligence upon an agreement on all material terms, including price, as is customary.

At the meeting between Broadcom and Qualcomm on February 23 (which Broadcom initiated, like all other meetings), Qualcomm refused to confirm that it will hold its previously scheduled stockholder vote on March 6.  Qualcomm's owners deserve the chance to preserve Broadcom's $79 per Qualcomm share offer.  Broadcom, as a stockholder of Qualcomm, will fight to ensure the ability of Qualcomm's owners to determine Qualcomm's future.

Broadcom stands ready to negotiate its proposal on a comprehensive basis on terms that are realistic for both parties and their respective stockholders, but has not yet found a counterparty prepared to do the same.  If the current Qualcomm board remains unwilling to genuinely engage – and continues with "engagement theater" on this basis – Broadcom looks forward to negotiating in good faith with the newly-elected Qualcomm board following the Qualcomm annual meeting on March 6.

Broadcom continues to urge Qualcomm stockholders to vote the entire BLUE proxy card "FOR" ALL SIX Broadcom nominees to show support for the Broadcom proposal.

Vote the BLUE Proxy Card Today! Every Vote Counts
If you have any questions or need assistance voting your BLUE proxy, please call our proxy solicitor:

D.F. King
800-848-2998 (toll-free)

or

212-269-5550 (collect)

Stockholders are urged NOT to sign or return any white proxy card received from Qualcomm and are strongly encouraged to discard the white proxy card.

 

Moelis & Company LLC, Citi, Deutsche Bank, J.P. Morgan, BofA Merrill Lynch, Morgan Stanley and Wells Fargo Securities are acting as financial advisors to Broadcom. Wachtell, Lipton, Rosen & Katz, Latham & Watkins LLP and Simpson Thacher & Bartlett LLP are acting as legal counsel.

About Broadcom

Broadcom Limited is a leading designer, developer and global supplier of a broad range of digital and analog semiconductor connectivity solutions. Broadcom Limited's extensive product portfolio serves four primary end markets: wired infrastructure, wireless communications, enterprise storage and industrial & other. Applications for our products in these end markets include enterprise and data center networking, home connectivity, set-top boxes, broadband access, telecommunication equipment, smartphones and base stations, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays.

Cautionary Note Regarding Forward-Looking Statements 

This announcement contains forward-looking statements (including within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended) concerning Broadcom. These statements include, but are not limited to, statements that address our expected future business and financial performance and statements about (i) the proposed transaction involving Broadcom and Qualcomm and the expected benefits of the proposed transaction, (ii) the expected benefits of acquisitions, (iii) our plans, objectives and intentions with respect to future operations and products, (iv) our competitive position and opportunities, (v) the impact of acquisitions on the market for our products, and (vi) other statements identified by words such as "will", "expect", "believe", "anticipate", "estimate", "should", "intend", "plan", "potential", "predict", "project", "aim", and similar words, phrases or expressions. These forward-looking statements are based on current expectations and beliefs of the management of Broadcom, as well as assumptions made by, and information currently available to, such management, current market trends and market conditions and involve risks and uncertainties, many of which are outside Broadcom's and management's control, and which may cause actual results to differ materially from those contained in forward-looking statements. Accordingly, you should not place undue reliance on such statements.

Particular uncertainties that could materially affect future results include risks associated with our proposal to acquire Qualcomm, including: (i) uncertainty regarding the ultimate outcome or terms of any possible transaction between Broadcom and Qualcomm, including as to whether Qualcomm will cooperate with us regarding the proposed transaction, (ii) the effects of the announcement of the proposed transaction on the ability of Broadcom and Qualcomm to retain customers, to retain and hire key personnel and to maintain favorable relationships with suppliers or customers, (iii) the timing of the proposed transaction, (iv) the ability to obtain regulatory approvals and satisfy other closing conditions to the completion of the proposed transaction (including stockholder approvals), and (v) other risks related to the completion of the proposed transaction and actions related thereto; any loss of our significant customers and fluctuations in the timing and volume of significant customer demand; our dependence on contract manufacturing and outsourced supply chain; our dependency on a limited number of suppliers; any acquisitions we may make, such as delays, challenges and expenses associated with receiving governmental and regulatory approvals and satisfying other closing conditions, and with integrating acquired companies with our existing businesses and our ability to achieve the growth prospects and synergies expected by such acquisitions; our ability to accurately estimate customers' demand and adjust our manufacturing and supply chain accordingly; our significant indebtedness, including the need to generate sufficient cash flows to service and repay such debt; dependence on a small number of markets and the rate of growth in these markets; dependence on and risks associated with distributors of our products; dependence on senior management; quarterly and annual fluctuations in our operating results; global economic conditions and concerns; our proposed redomiciliation of our ultimate parent company to the United States; our competitive performance and ability to continue achieving design wins with our customers, as well as the timing of any design wins; prolonged disruptions of our or our contract manufacturers' manufacturing facilities or other significant operations; our ability to improve our manufacturing efficiency and quality; our dependence on outsourced service providers for certain key business services and their ability to execute to our requirements; our ability to maintain or improve gross margin; our overall cash tax costs, legislation that may impact our overall cash tax costs and our ability to maintain tax concessions in certain jurisdictions; our ability to protect our intellectual property and the unpredictability of any associated litigation expenses; any expenses or reputational damage associated with resolving customer product warranty and indemnification claims; cyclicality in the semiconductor industry or in our target markets; our ability to sell to new types of customers and to keep pace with technological advances; market acceptance of the end products into which our products are designed; and other events and trends on a national, regional and global scale, including those of a political, economic, business, competitive and regulatory nature.

Our filings with the Securities and Exchange Commission ("SEC"), which you may obtain for free at the SEC's website at http://www.sec.gov, discuss some of the important risk factors that may affect our business, results of operations and financial condition. We undertake no intent or obligation to publicly update or revise any of these forward looking statements, whether as a result of new information, future events or otherwise, except as required by law.