• News
  • Markets

U.S. security concerns delay Qualcomm vote on $142bn Broadcom sale

U.S. security concerns delay Qualcomm vote on $142bn Broadcom sale

Broadcom had nominated 6 members to the 11-member board of Qualcomm.

CFIUS's main responsibility is to determine the national security implications of any proposed acquisitions by a foreign party that would result in control of a United States business. CFIUS asked Qualcomm to delay the Broadcom takeover vote which was supposed to happen on Tuesday.

Qualcomm's shares fell 4 percent in trading before the bell.

Broadcom's hostile takeover bid for chip-making rival Qualcomm has become even more hostile now that a US national security agency over the weekend ordered Qualcomm to delay a shareholder vote scheduled for March 6 that would have set the direction of the proposed $117 billion deal.

Analyst Patrick Moorhead of Moor Insights & Strategy questioned the wisdom of Broadcom buying Qualcomm. Qualcomm said it would challenge that fine. This derails, temporarily at least, Broadcom's acquisition ambitions. This brings Qualcomm's "engagement theater" to a new low. Qualcomm has about 1.4 billion shares outstanding. Stockholders can also change their votes up until and including in the meeting, which has yet to be rescheduled. Once that happens, which is expected in early to mid-May, the redomiciling can happen quickly, according to a source familiar with the matter.

Broadcom said it was notified on Sunday night that Qualcomm had secretly filed a voluntary request with CFIUS on January 29 to initiate an investigation into its possible takeover by a foreign company.

Broadcom had not claimed that it was surprised by the CFIUS investigation, but that it had not known that Qualcomm's voluntary request was behind the probe. "It is critical that Qualcomm stockholders know that Qualcomm did not once mention submitting a voluntary notice to CFIUS in any of its interactions with Broadcom to date".

Oosthuizen leads WGC Mexico Championship
He was one stroke in front of England's Chris Paisley and American Xander Schauffele, the US PGA Tour's 2017 Rookie of the year. The highlight was a near-ace at the 17th, his eighth hole of the day - where his tee shot spun within inches of the cup.

PSG confirm Neymar has fractured metatarsal
On Sunday, Emery had voiced his hopes that the world's most expensive player would make it back in time for the blockbuster clash. Before that, PSG plays Marseille in the French Cup quarterfinals on Wednesday, and is at Troyes in the league on Saturday.

Wine ban corked: Alta. suspends retaliatory measures against BC
The pipeline expansion would triple the amount of bitumen transported from Alberta to tidewater in Burnaby, B.C. Asked if the reference to the courts should be read as a sign B.C.is backing down, Horgan said "not at all".

The merger of the two chipmakers would be the biggest technology deal in history.

The order for a delay by the government panel is unusual, since CFIUS doesn't usually investigate before a merger is agreed.

KitGuru Says: Qualcomm has never been keen on this takeover proposal, so if the company did in fact get CFIUS involved, then it wouldn't be much of a shock. Broadcom's investors (and Wall Street!) are favorable towards the deal, but Qualcomm itself has been fighting hard against the takeover.

An increasing number of devices rely on the semiconductors developed by companies like Qualcomm and Broadcom, with chip sales totaling more than $410 billion previous year alone.

Broadcom noted in its statement that it has "committed" to redomiciling in the United States, that the process is "well underway" and that Broadcom (currently based in Singapore) expects to be a US -based firm by the end of its second fiscal quarter on May 6, 2018.

"Qualcomm's work is too important to our national security to let it fall into the hands of a foreign company - and in a hostile takeover no less", Cotton, a vocal Republican voice on foreign relations, said in a statement.

Leave Your Comment

Leave Your Comment

Latest News

Breaking News


One-Handed Linebacker Shaquem Griffin Sets NFL Combine 40-Yard Dash Record

The fastest of this year came Saturday, when LSU wide receiver D.J. Griffin was also motivated (as always) by his doubters. I added more than three or four to my actual max.

Syria: US accuses Russian Federation of killing civilians in eastern Ghouta

According to activists, there are small pockets of Hayat Tahrir al-Sham, an al-Qaeda affiliate, still in the area. The Observatory said the advancing forces could soon besiege Afrin city, where 1 million people live.

Kaala teaser released: Rajinikanth is going to blow your minds

The 1 min 17 seconds long teaser of Kaala is a power-packed one and it gives a flawless look into Superstar's next big venture. His charisma is incomparable to any other artiste and Pa Ranjith, the director of Kaala , has made optimal use of this factor.

Rick Ross heart, lungs pack up, now on life support

Mark Leone informed the Miami Herald on Friday that he could not confirm if the patient was Ross or if he was taken to a hospital. Rick Ross' fellow rappers like Missy Elliott , LL Cool J , Snoop Dogg and Gucci Mane have tweeted messages of support for him.

UFC 222: Cyborg saves day after Holloway injury

The woman who once couldn't get a contract with the company is now set to headline her second PPV in a little over 60 days. Steven Muehlhausen is an MMA and boxing writer and contributor for Sporting News.

Two killed on campus in Central Michigan University dorm

The Florida gunman, who had a history run-ins with law enforcement, used a semi-automatic assault rifle in the shooting. Even though the suspect has been identified he is still at large and the university is still on lockdown.

YouTube faces lawsuit after allegedly refusing to hire white or Asian males

When Lee filed a complaint with H.R.at the company's urging, she said that Google declined to investigate. Recruiters at YouTube tracked the hiring of underrepresented minorities with a "diversity tracker".

Businesses Reportedly Gave Jared Kushner's Co $500M Loans After White House Meetings

At the same time , Kushner is the head of the Trump administration's effort to broker a deal between Israelis and Palestinians. But Trump's daughter Ivanka and her husband, Jared Kushner , seem to have a different arrangement in mind.

Czech's Ester Ledecka wins snowboarding parallel giant slalom gold, makes history

Ter Mors earned gold in the 1,000 meters in long-track speedskating and added a bronze in the 3,000-meter relay in short-track. Her victory in the parallel giant slalom, an event in which she is the reigning world champion, was far less of a shock.

OR fans ironically troll Arizona and Sean Miller over $100K claim

Miller and Hawkins reportedly discussed paying elite recruit Deandre Ayton $100,000 to ensure the center would commit to Arizona. Greg Hansen of the Arizona Daily Star first reported the news that Miller would not be on the sidelines Saturday night.