Qualcomm should negotiate with Broadcom on a deal, ISS says

San Francisco: Broadcom Ltd’s bid for Qualcomm Inc. is a good place to start negotiations between the two companies on what would be the biggest deal in the history of technology, according to Institutional Shareholder Services Inc. “Qualcomm’s optimistic vision of the future would likely resonate more effectively among shareholders if the company’s track record was more like that of its would-be acquirer,” ISS wrote in the report. “Broadcom’s offer appears to be a good starting point for negotiations, though steps could be taken to increase its certainty—or at least provide Qualcomm and its shareholders with a better safety net should a deal not eventually close.” Qualcomm shareholders are scheduled to vote on the slate of Broadcom nominees on 6 March. On Friday, Qualcomm’s board said discussions with Broadcom failed to persuade directors to sign off on the deal but left open the door to further discussions. Broadcom isn’t commenting publicly because it would prefer to hold friendly negotiations with Qualcomm, said a person familiar with the company’s plans.