Massive Qualcomm takeover is on hold after United States government intervention
Mar 06, 2018, 01:28
A USA national security panel on Sunday ordered Qualcomm Inc (QCOM.O) to put off its March 6 annual shareholder meeting by a month, delaying a long awaited showdown in the company's attempt to fend off a takeover by Singapore-based Broadcom Ltd (AVGO.O).
The Committee on Foreign Investment in the United States, which has the power to stop deals that could harm national security, asked Qualcomm to postpone the annual meeting and election of directors by 30 days to give it the ability to investigate the proposed acquisition.
"This was a blatant, desperate act by Qualcomm to entrench its incumbent board of directors and prevent its own stockholders from voting for Broadcom's independent director nominees", Broadcom said in a statement.
"Broadcom has been interacting with CFIUS for weeks and made two written submissions to CFIUS", the Qualcommstatement said.
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.
Qualcomm officials said that notwithstanding Broadcom's dismissive rhetoric, "this is a very serious matter for both" companies. Broadcom "expects to complete its redomiciliation process to the U.S.by May 6, at which point the proposed acquisition will not be a CFIUS covered transaction", Zino wrote in a report on Monday.
Broadcom, which has prompted the concerns due to the fact that it is based in Singapore, slammed Qualcomm for involving Cfius. Broadcom then reduced its offer for Qualcomm to $79 a share.
Cornyn said Qualcomm is the leading USA company in driving 5G development, and an acquisition by Broadcom could stall that and hand the leadership of 5G R&D to Huawei, a Chinese tech firm.
Broadcom has said that its chief executive, Hock Tan, and most of its senior management are American, and that they plan to relocate the company to the U.S.
The Qualcomm statement said CFIUS is an independent governmental body charged with protecting USA national security and "has determined that there are national security risks to the United States as a result of and in connection with the transaction proposed by Broadcom". "The U.S.is now in a race with China in the development of 5G technologies, a race that will have profound impact on critical U.S. telecommunications infrastructure and on U.S. national security for years to come".
Broadcom's proposed takeover of Qualcomm would be the largest deal ever in semiconductors, creating a chip juggernaut with a leading market position in many top chips used in smartphones.
In response to Putin's announcement, White said the US has been watching Russian Federation and the Pentagon is not surprised. The domestic grain harvest above 134 mln tonnes "is the figure beyond thought even for the Soviet Union", the president said.
Spurs responded and won a corner in the third minute, but it came to nothing and the game showed no signs of settling down. The South Korean said Tottenham thrived from playing at their temporary home after taking some time to settle in.
Anderson last season was solid on a bad Broncos offense carrying the ball 245 times for 1,007 yards and three touchdowns. So, instead of signing the quarterback, or putting the tag on him, the Redskins chose to just go all out on another guy.
Thankfully, Samsung still includes its own email, calendar, contacts, image gallery, music player, and web browser software. This functionality encourages creativity and it will be interesting to see what people do with this capability.
Trump spoke 32 minutes, longer than normal.At one point, a woman heckled Trump to "stop", and had to be shushed by tablemates. Trump accepted an invitation to the 133rd anniversary dinner, his first given that he declined to attend past year .
At least 76 pro-regime fighters and 43 rebels from Jaish al-Islam have also been killed in clashes since Feb 25, it said. Rebels have consistently denied this accusation and say people will not leave because they fear the government.
The S&P 500 fell for a third straight day after President Donald Trump said the USA would slap tariffs on steel and aluminum. Revenue rose to US$4.03bn from US$3.96bn the year before and was roughly in line with expectations.
As the snobbish Winchester, Stiers was a ideal foil for Alan Alda's lovable, wise-cracking character Hawkeye Pierce. Emmy Award-winning actor David Ogden Stiers has died at his OR home, following a battle with bladder cancer.
Rockets Win Streak Hits 15 Games With Win Over Celtics
A big factor in the Celtics' offensive surge has been their ability to shoot the ball well from the floor and from 3-point range. Harden, the NBA's leading scorer, comes into Saturday's game averaging 31 points per game and almost nine assists per game.