Economy

US Asks Qualcomm to Delay Board Meeting for Review of Broadcom Deal

US Asks Qualcomm to Delay Board Meeting for Review of Broadcom Deal

The logo of Qualcomm is seen during the Mobile World Congress in Barcelona Thomson Reuters (Reuters) - Broadcom Ltd said on Monday Qualcomm Inc secretly requested an USA national security panel on January 29 to start an investigation into its proposed $117 billion buyout offer, leading to a delay in Qualcomm's March 6 shareholder meeting.

Broadcom (NASDAQ:AVGO) responds to the CFIUS investigation of its Qualcomm (NASDAQ:QCOM) acquisition and the resultant delay of Qualcomm's annual meeting.

The order adds to signs that Broadcom's promise to move its official base back to the United States before it completes the proposed $117-billion takeover may not be enough for US officials at a time when global trade tensions are rising. If this happens, the acquisition is no longer covered by CFIUS. Those opposed to Broadcom's $117 billion bid for Qualcomm say it would put the U.S.at a disadvantage in the 5G race against China, and potentially create national security issues.

It has said it would then be a United States company and the deal would not be subject to review.

Broadcom shareholders will vote on the proposal by May 6, after which it must be confirmed by a judge.

More news: PM conveys good wishes to CBSE students for exams

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

Last month Qualcomm also unveiled a sweetened $44-billion agreement to buy NXP Semiconductors NV to expand its presence in automotive chips and build its defense against Broadcom's hostile bid. This brings Qualcomm's "engagement theater" to a new low, " Broadcom said.

The SEC has cleared Broadcom's preliminary proxy statement.

"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".

Qualcomm's shares fell 2 per cent in trading before the bell.


  • WhatsApp is extending deadline to delete messages

    WhatsApp is extending deadline to delete messages

    Through this feature, Android users will be able to preview their voice recordings before sending them to anyone. The Facebook-owned messaging app is testing this new update available and will soon roll it out for all users.
    China says its 'moderate' defence spending rises are no threat

    China says its 'moderate' defence spending rises are no threat

    Last year, the spokeswoman announced a defense spending increase of about 7 percent. Mr Xi's second term as president begins this year and extends to 2023.
    Fox slams Corbyn plan on EU customs union

    Fox slams Corbyn plan on EU customs union

    And the gains from possible future deals are smaller and further off than the immediate losses from leaving the European Union and its free-trade arrangements.
  • Margot Robbie Brought Her Mum To The Oscars & They're Stuntin'

    Margot Robbie Brought Her Mum To The Oscars & They're Stuntin'

    I love you", she added. "The glass of champagne with everyone before you walk out the door!" she says. The statuesque star adorned her look with a diamond necklace, bangles and a glittering ring.
    Thousands of British homes without water as snow thaw bursts pipes

    Thousands of British homes without water as snow thaw bursts pipes

    We sincerely apologise to all those who are now without water or experiencing low pressure. Distribution sites have been set up in London for customers to collect bottled water.
    All Black Sevens consigned to fifth place playoff

    All Black Sevens consigned to fifth place playoff

    The Blitzboks will play Fiji in the bronze medal match after their shock 19-7 semi-final defeat against hosts, the USA. Fiji remain in third place on 79 points followed by Australia on 72.
  • Clouds And Some Rain To Start Off The Week

    Clouds And Some Rain To Start Off The Week

    Get out and enjoy the weather today because this week will bring rain, possible snow, and a big temperatures swing. I don't see we'll see any accumulation because the ground has been super warm, but we'll keep you posted on that.
    Merkel secures fourth term in government as SPD backs coalition deal

    Merkel secures fourth term in government as SPD backs coalition deal

    Following the SPD's emphatic decision for a new partnership, Merkel is expected to launch her fourth government by mid-March. The Party has again united together, and he has informed Chancellor Merkel by phone about the result, according to him.
    Winter weather advisory issued

    Winter weather advisory issued

    A quick changeover from mixed precipitation to snow is expected Monday afternoon as temperatures fall to near the freezing mark. Madison's 2018 precipitation total (rain plus snow converted to liquid) stayed at 4.18 inches, 1.32 inches above normal.
  • Corey Brewer to sign with Thunder after buyout from Lakers, reports say

    Corey Brewer to sign with Thunder after buyout from Lakers, reports say

    He's an intriguing candidate because he played for Billy Donovan at Florida and is similar to Andre Roberson . However, the acquisition of Brewer is huge for OKC and their playoff aspirations.
    Met Eireann Reduce Clare Weather Warning To Yellow

    Met Eireann Reduce Clare Weather Warning To Yellow

    An orange snow-ice caution is in place for Leinster, Cavan, Monaghan, Cork, Tipperary and Waterford until noon on Monday. The rain will be persistent at times - especially near east and south coasts, with sleet possible over high ground.
    Listeria outbreak: South Africa bins polony and other meats

    Listeria outbreak: South Africa bins polony and other meats

    Except for the much higher numbers, South Africa's listeria outbreak is eerily similar to Canada's experience in 2008. Maple Leaf found mechanical meat slicers at its ready-to-eat meat plant spread the bacteria across Canada.