USA security panel delays Broadcom-Qualcomm merger showdown

USA security panel delays Broadcom-Qualcomm merger showdown

USA security panel delays Broadcom-Qualcomm merger showdown

A USA national security panel on Sunday ordered Qualcomm to put off its March 6 annual shareholder meeting, delaying a long-awaited showdown in the company's attempt to see off a takeover bid by Broadcom.

In what can only be described as an unusual move, the U.S. Committee of Foreign Investment in the United States (CFIUS) has ordered Qualcomm Inc.

"It should be clear to everyone that this is part of an unprecedented effort by Qualcomm to disenfranchise its own stockholders", Broadcom said in a statement.

At the now-postponed meeting, Qualcomm shareholders were going to vote whether to replace six Qualcomm board directors with Broadcom-nominated candidates, a move that could accelerate the acquisition if those candidates were elected and took a majority position on the board.

Singapore-based Broadcom's overtures and wish to acquire Qualcomm, first announced back in 2017, has hit roadblock after roadblock.

"We can not overstate the likely harm that would result to Qualcomm, the USA company leading the development of 5G and other next-generation technologies, as well as to United States security interests", the letter said.

Broadcom, based in Singapore, has pledged to move its headquarters to the USA, which it believes would remove CFIUS jurisdiction.

See stocks near a buy point, get chart pattern recognition and run custom screens.

Tiffany Haddish re-wears 'Girls Trip' gown to Oscars
And while Tiffany may not have been nominated for an award at tonight's show, with this move, she definitely was a victor . Tiffany Haddish has proven herself to be God's gift to comedy these days, and she is 2017's breakout star for a reason.

Shaquem Griffin smashes records, leaves National Football League in disbelief at draft work-outs
Shaquem Griffin was projected before the combine to be at best a mid-round pick. Not after becoming the talk of this combine. "I didn't know I had it in me".

Attorney General Retorts to Angry Presidential Tweet
Trump and Republicans also have encouraged Sessions to look further into the surveillance abuse allegations. Jeff Sessions asking the Inspector General to investigate potentially massive FISA abuse", Trump said .

Qualcomm did not mention submitting a voluntary notice to CFIUS in any of its interactions with Broadcom.

In a statement, Broadcom disclosed that Qualcomm had voluntarily requested CFIUS intervention on January 29 and told none of its shareholders.

Qualcomm Chief Executive Officer Steve Mollenkopf has so far received the second-lowest number of votes among the combined 17 nominees from both sides, according to the data seen by Bloomberg.

Broadcom's proposed purchase of Qualcomm is valued at about $117 billion.

Shares of Qualcomm (qcom) lost nearly 2% to hit $63.71 in midday trading on Monday and remain well below Broadcom's offer price. The federal panel is an independent entity, they argued, adding that Broadcom officials shouldn't be surprised given that the company "has been interacting with CFIUS for weeks and made two written submissions to CFIUS". A combined Broadcom-Qualcomm would create the world's third-largest chip maker, behind Samsung and Intel. Even if the company's slate of 11 directors were to be re-elected, once Broadcom became a US company Qualcomm would have lost the CFIUS arrow in its quiver.

CFIUS past year opposed the takeover of U.S. semiconductor manufacturer Lattice by a Chinese state group backed by a USA investment fund, and President Donald Trump then blocked the deal.

Broadcom had already reacted negatively to CFIUS taking an interest in the deal and appears to be throwing its metaphorical toys out of its pram at this latest development.

Related news