Qualcomm says former chairman exploring buyout option after hostile takeover bid blocked

Former Qualcomm CEO Paul Jacobs. (REUTERS)
Updated 17 March 2018
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Qualcomm says former chairman exploring buyout option after hostile takeover bid blocked

SAN FRANCISCO: Qualcomm said on Friday that Paul Jacbos, its chairman until a week ago, was considering a buyout effort for the California chipmaking giant just days after it fended off a hostile bid from Singapore rival Broadcom.
Jacobs, who had been chief executive at Qualcomm for a decade and executive chairman until March 9, will not be renominated to its board at its annual meeting next Friday, the company said.
The board made a decision not to renominate Jacobs “following his notification to the board that he has decided to explore the possibility of making a proposal to acquire Qualcomm.”
As a result, the number of board members will be reduced from 11 to 10 as of the holding of the annual meeting.
The statement said that if Jacobs does make a bid, “the board will of course evaluate it consistent with its fiduciary duties to shareholders.”
The announcement comes after reports that Jacobs has sought to raise capital for a Qualcomm bid, and had approached Japanese tech giant SoftBank, which is in the midst of a major investment spree in the sector.
Jacobs is the son of Qualcomm co-founder Irwin Jacobs and was CEO at the San Diego firm from 2005 to 2014.
Last week, he was replaced as chairman by Jeffrey Henderson, who will be non-executive chairman at Qualcomm, the leading maker of chips for smartphones.
The news comes days after US President Donald Trump blocked a $117 billion hostile bid from Broadcom, citing national security reasons.
US officials had maintained that Broadcom would have curbed innovation at the US chip giant and opened the door to Chinese firms to dominate the process for 5G, or fifth-generation wireless networks.
Qualcomm’s market value is around $90 billion, and is seen as an important player in the 5G race, but it has been hampered by antitrust actions around the world and litigation with Apple over claims that the chipmaker abused its dominance in the sector.
Qualcomm is also in the process of trying to close a takeover of Dutch chip rival NXP.
The board statement said that Qualcomm is now “focused on executing its business plan and maximizing value for shareholders as an independent company.”
It added that Jacobs “has been a valued employee and director of Qualcomm since 1990” and that “he has been one of the great innovators in our industry.”


Iran falls to sixth biggest oil supplier to India as sanctions bite

Updated 14 December 2018
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Iran falls to sixth biggest oil supplier to India as sanctions bite

  • Tehran dropped two places to become only the sixth biggest supplier after New Delhi cut purchases due to the impact of US sanctions
  • The UAE, which was the sixth biggest oil seller to India in October, became the third-top seller to India in November

NEW DELHI: India’s monthly oil imports from Iran plunged to their lowest in a year in November with Tehran dropping two places to become only the sixth biggest supplier after New Delhi cut purchases due to the impact of US sanctions, according to ship tracking data and industry sources.
Last month, the US introduced tough sanctions aimed at crippling Iran’s oil revenue-dependent economy. Washington did, though, give a six-month waiver from sanctions to eight nations, including India, and allowed them to import some Iranian oil.
India is restricted to buying 1.25 million tons per month, or about 300,000 barrels per day (bpd).
In November, India imported about 276,000 bpd of Iranian oil, a decline of about 41 percent from October and about 4 percent more than the year-ago month, ship tracking data obtained from shipping and trade sources showed.
After abandoning the 2015 Iran nuclear deal, US President Donald Trump is trying to force Tehran to quash not only its nuclear ambitions and its ballistic missile program but its support for militant proxies in Syria, Yemen, Lebanon and other parts of the Middle East.
India’s imports from Iran in November, included some parcels that were loaded in October. In November, Iraq and Saudi Arabia continued to be the top-two oil sellers to India.
The UAE, which was the sixth biggest oil seller to India in October, became the third-top seller to India in November, knocking down Venezuela to fourth position.