US Republican senator backs review of Broadcom's Qualcomm bid

Qualcomm building is shown in San Diego California U.S. Mike B  REU

Qualcomm building is shown in San Diego California U.S. Mike B REU

USA regulators ordered a delay in Qualcomm's annual shareholder meeting, which was scheduled today, so they can review a proposed $117 billion hostile takeover bid by Broadcom for national security concerns.

Broadcom had hoped to install six friendly board members at a shareholder meeting Tuesday, which would effectively give Broadcom control and allow a vote for Qualcomm to accept Broadcom's acquisition offer.

As noted by The Wall Street Journal, the surprise move signals concerns among USA government officials that a Broadcom acquisition of Qualcomm could raise national security issues and potentially affect the United States' role in the development of 5G network technology as China works to take a lead in the space.

"It is my view that failure by CFIUS to review this hostile takeover would potentially encourage other foreign parties to evade CFIUS review by taking control of the boards of sensitive US businesses through proxy fights", Texas Republican Sen.

A source familiar with CFIUS' thinking said that if the deal was completed, the US military was concerned that within 10 years, "there would essentially be a dominant player in all of these technologies and that's essentially Huawei, and then the American carriers would have no choice".

Before announcing its first bid for Qualcomm, Broadcom had announced that it would begin the corporate redomiciling process to the United States after having been moved from there in 2015.

In dueling statements, Broadcom officials claimed the investigation was undertaken at Qualcomm's request without their knowledge, while Qualcomm officials said the suggestion that the CFIUS investigation was coming as a surprise to Broadcom "has no basis in fact". Unsurprisingly, Broadcom says this is a desperate move on the part of Qualcomm to stop the takeover.

Women held in Iran during Federation Internationale de Football Association visit
He also attended a me only football match here which drew criticism from rights activists, reports the Voice of America. Mr Infantino had been speaking to reporters about a two-year dispute between Saudi Arabia and Iran .


Broadcom said on Monday that CFIUS' intervention was the result of secret moves made by Qualcomm on January 29 to seek an investigation into the offer, which Qualcomm's board has said significantly undervalues the company.

"This is a very serious matter for both Qualcomm and Broadcom", the San Diego company said in a statement. "Broadcom has been interacting with CFIUS for weeks and made two written submissions to CFIUS".

The deal was expected to face tough scrutiny from competition regulators. John Cornyn, R-Texas, and local Reps. But it now appears willing to continue to pursue its bid for Qualcomm through the foreign-investment committee review, said Bernstein research analyst Stacy Rasgon in a research note.

Qualcomm said it would comply with the order and delay its shareholder meeting at least 30 days.

Previously, Broadcom has said it would walk away from its $79 per share offer to acquire Qualcomm should the annual meeting be delayed past today.

Just 10.5% of the outstanding NXP common shares have been tendered to date in the deal originally proposed in late October.

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