Qualcomm takeover bid halted by U.S. government

08 March, 2018, 01:34 | Author: Dustin Murphy
  • Broadcom's Qualcomm bid gets a kick in the groin from the US government

It's been an extremely busy couple of months for both Qualcomm and Broadcom, as the latter continues to pursue a hostile takeover.

Qualcomm did not deny seeking a CFIUS review but accused Broadcom of using misleading rhetoric "to trivialize and ignore serious regulatory and national security issues". The recent move by the US government means that Qualcomm will have to wait until next month to hold a key shareholders' meeting.

The announcement comes a day after the USA put the hostile takeover on hold, saying that Broadcom could jeopardize national security by threatening Qualcomm's technological leadership. But the Treasury Department expects Broadcom to scale back on long-term investment, including in R&D, if the acquisition goes through. The attorney believes that the letter from the U.S. Treasury spells the end of Broadcom's bid for now. If the takeover succeeds, Broadcom pledged to maintain the R&D resources Qualcomm devotes to 5G and innovation in future wireless standards and focus the R&D spend on "those critical technologies that are essential to the US". 6, a move it has argued should not make it subject to a review on national security concerns. Broadcom has launched an unsolicited effort to acquire Qualcomm for approximately $117 billion. Instead the CFIUS's unease hinges on Qualcomm being a national champion in the areas of standard-setting and chip R&D and the apparent concern that it would be diminished in this respect once in the suffocating embrace of Broadcom.

The semiconductor industry is locked in a race to develop chips that power so-called 5G wireless technology, allowing the transmission of data at faster speeds.

U.S. Sen. John Cornyn of Texas, as well as San Diego Congressmen Scott Peters, D-San Diego, and Duncan Hunter, R-Alpine, sent letters to Trump Administration officials requesting a CFIUS review.


Broadcom also took a swipe at Qualcomm's licensing business, which is a subject of dispute between the companies.

Four days later, Broadcom announced its Qualcomm bid. He has proposed legislation to tighten CFIUS' scrutiny of deals.

The United States Department of the Treasury said that the CFIUS now can look into Broadcom's acquisition plan in depth. But the day before, Qualcomm said the vote had to be put on hold; a government committee led by the US Treasury Secretary needed time to investigate a potential merger.

CFIUS's ability to intervene in the merger could disappear if Broadcom moves its headquarters to the USA, as it promised to do at a public White House ceremony in November.

Recommended:

  • Toronto police seek help in identifying another alleged victim of Bruce McArthur

    Toronto police seek help in identifying another alleged victim of Bruce McArthur

    Authorities appealed to the public for help in identifying the apparent victim from the photograph, seemingly taken postmortem. So far, three have been identified as belonging to Soroush Mahmudi, 50, Andrew Kinsman, 49 and Skandaraj Navaratnam, 40.
    Apple said to plan its own high-end headphones

    Apple said to plan its own high-end headphones

    Apple purchased Beats for $3 billion in 2014 , and Beats has been Apple's main headphone brand until the introduction of AirPods. Although the company plans to release the headphones as early as 4Q18, the site notes that there have been setbacks.
    Chief architect of BJP's win in North-East says targeting youth, tribes helped

    Chief architect of BJP's win in North-East says targeting youth, tribes helped

    The governor asked Sarkar to continue in office till the next chief minister takes over, officials said. The BJP had unleashed violence against Left cadres in Tripura after its victory, he alleged.
  • Oscars 2018: How Olympic skater Adam Rippon stole the red carpet show

    Oscars 2018: How Olympic skater Adam Rippon stole the red carpet show

    On an evening dominated by womenswear's most glamorous creations, he showed that guys could-and should-shake things up, too. Adam Rippon arrived to the 90th Academy Awards red carpet at the Dolby Theatre in Hollywood in a unique ensemble.
    NRA has backed most state gun laws passed since Sandy Hook

    NRA has backed most state gun laws passed since Sandy Hook

    The victims of mass shootings are chosen not for what they have done, but simply for where they happen to be. The US corporation said the Florida shooting on 14 February, in which 17 people died, required a response.

    "We are not cheering for dialogue with the USA ", says North Korea

    We will remind, recently trump said that insists on the willingness of the USA to start direct talks with North Korea. The group will fly into the North this afternoon and stay for two days.
  • Some rain and snow on the way

    Some rain and snow on the way

    Tomorrow, cloud, rain and hill snow will clear away through the morning followed by a mix of sunny spells and scattered showers. Less than an inch of new snow is likely this evening with most of the snow expected to fall before midnight.
    Opioid Overdose Among Children Nearly Doubles, DOJ Creates Task Force

    Opioid Overdose Among Children Nearly Doubles, DOJ Creates Task Force

    Those age 12 to 17 made up 60 percent of opioid overdose admissions; the second-largest group was between one and five years old. They found that between 2004 and 2015, there were a total of 3,647 opioid-related hospitalizations in 31 different hospitals.
    College lockdown ends; students return to dorms

    College lockdown ends; students return to dorms

    The investigation was continuing, with police remaining on campus. 'Comply with all law enforcement instructions. Utica College received threats from an individual who stated that he was armed with a weapon on the campus", Lt.
  • Tennis Great Serena Williams Stars in Pro-Woman Ad During Oscars

    Tennis Great Serena Williams Stars in Pro-Woman Ad During Oscars

    She married Reddit co-founder Alexis Ohanian and gave birth to a baby girl, Alexis. She has been practising hard for that, and competition is part of the process.
    Donald Trump falls 222 places in Forbes billionaires rich list

    Donald Trump falls 222 places in Forbes billionaires rich list

    Sun Pharmaceuticals founder Dilip Shanghvi ranks next as the fifth riches Indian with $12.8 billion at the 115th global spot. Amazon's shares have almost doubled from $846 a share last March to 1,523 dollars per share last night.
    Amazon Wants to Offer Checking Accounts

    Amazon Wants to Offer Checking Accounts

    That JPMorgan Chase & Co.is seemingly among the first banks Amazon has approached about the project is most likely no coincidence. Millions of customers buy all kinds of "stuff" (paging the late, great George Carlin!) from Amazon on their computers and phones.


Popular

Increases in Opioid-Involved Overdoses in All Five US Regions — CDC
Increases among the 3 observed age groups were very consistent: 31% in ages 25-34; 36% in ages 35-54; 32% in ages 55 or older. Despite efforts to address the crisis , opioid overdoses in the US continue to increase at a disturbing rate.

J'can to play royal fiance - before the wedding
As a Royal-to-be, wild parties in the public eye are out of the question for Meghan, or other British Royals for that matter. The Duchess of Cambridge's dress was designed by Alexander McQueen's Sarah Burton.

Jhanvi Kapoor Turns 21, First Birthday Without Mother Sridevi
Nevertheless, as Janhvi put in an emotional note on Instagram last week, she is feeling a "gnawing hollowness" within her. One can only imagine what Sridevi's daughters are going through, not having their mum, who they were extremely close to.

Mariners nearing reunion with Ichiro Suzuki
In his first 10 seasons, he accumulated at least 200 hits each year, including an all-time single-season record of 262 in 2004. The Mariners could seek a free agent like Jon Jay or Carlos Gonzalez, though would likely offer just a one-year deal.

US aircraft carrier in Vietnam for historic visit
Hiep said the Carl Vinson's visit is likely to irritate China, but that Beijing will not take it too seriously. The Carl Vinson strike group will begin its four day port call in Da Nang Monday.

Police foil ISIL attack plot on US Embassy in Ankara
An attack at a luxury Istanbul nightclub during New Year celebrations on January 1, 2017, killed 39 people. A statement from the prosecutor's office said the suspects were detained in a police operation on March 5.

Guatemala vows to move embassy in Israel to Jerusalem
"This decision strongly evidences Guatemala's continued support of Israel", Morales said . Most countries' embassies are located in Tel Aviv.

Trump may visit Israel for embassy move
The American president was speaking at the White House on Monday alongside Israel's prime minister, Benjamin Netanyahu .

USA security concerns delay Qualcomm vote on $142bn Broadcom sale
National security is also the reason the president gave last week for imposing tariffs on imported steel and aluminum. Any Broadcom candidates elected would be required to act in the best interest of Qualcomm and its shareholders.

RSA listeriosis outbreak traced to meat
Zambia's health minister Chitalu Chilufya said the ban would also include dairy products, vegetables and fruits. SANCU urged authorities to monitor the recall process of contaminated products very carefully.