Will Intel Throw a Monkey Wrench into Broadcom-Qualcomm Deal?

As chipmaker Broadcom steps up its efforts to acquire rival Qualcomm via a hostile takeover, industry giant Intel is closely watching developments with an eye toward possibly acquiring Broadcom.

Citing unnamed "people familiar with the matter," The Wall Street Journal yesterday reported that should Broadcom appear likely to take over Qualcomm, Intel "could step in with its own offer for Broadcom."

Meanwhile, Broadcom announced today that is has accelerated its timetable for redomiciling its organization from Singapore to the U.S., moving up the date from May 6 to April 3. While the change in headquarters has been in the works since late last year, the earlier date would complete the process before a scheduled vote by Qualcomm shareholders.

The earlier redomiciliation also appears aimed at blunting concerns raised by the U.S. Treasury Department's Committee on Foreign Investment in the U.S. (CFIUS). The committee last week directed Qualcomm to postpone its shareholder meeting so it could investigate the proposed Broadcom takeover to assess whether the deal poses any national security risk.

Broadcom: National Security 'Not a Risk'

In its announcement today about the earlier redomiciliation date, Broadcom said it had always planned to complete the move ahead of a planned merger with Qualcomm.

"In both the definitive merger agreement that Broadcom provided to Qualcomm and in the revised version that Qualcomm sent back to Broadcom on February 26, 2018, one of the closing conditions was that Broadcom redomicile to the U.S., and notably, in neither party's draft was the closing of the proposed acquisition conditioned on CFIUS clearance," the company said in a statement. "In short, U.S. national security concerns are not a risk to closing, as Broadcom never plans to acquire Qualcomm before it completes redomiciliation."

Intel, meanwhile, is preparing to act if the merger appears likely to succeed, according to...

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Will Intel Throw a Monkey Wrench into Broadcom-Qualcomm Deal?

As chipmaker Broadcom steps up its efforts to acquire rival Qualcomm via a hostile takeover, industry giant Intel is closely watching developments with an eye toward possibly acquiring Broadcom.

Citing unnamed "people familiar with the matter," The Wall Street Journal yesterday reported that should Broadcom appear likely to take over Qualcomm, Intel "could step in with its own offer for Broadcom."

Meanwhile, Broadcom announced today that is has accelerated its timetable for redomiciling its organization from Singapore to the U.S., moving up the date from May 6 to April 3. While the change in headquarters has been in the works since late last year, the earlier date would complete the process before a scheduled vote by Qualcomm shareholders.

The earlier redomiciliation also appears aimed at blunting concerns raised by the U.S. Treasury Department's Committee on Foreign Investment in the U.S. (CFIUS). The committee last week directed Qualcomm to postpone its shareholder meeting so it could investigate the proposed Broadcom takeover to assess whether the deal poses any national security risk.

Broadcom: National Security 'Not a Risk'

In its announcement today about the earlier redomiciliation date, Broadcom said it had always planned to complete the move ahead of a planned merger with Qualcomm.

"In both the definitive merger agreement that Broadcom provided to Qualcomm and in the revised version that Qualcomm sent back to Broadcom on February 26, 2018, one of the closing conditions was that Broadcom redomicile to the U.S., and notably, in neither party's draft was the closing of the proposed acquisition conditioned on CFIUS clearance," the company said in a statement. "In short, U.S. national security concerns are not a risk to closing, as Broadcom never plans to acquire Qualcomm before it completes redomiciliation."

Intel, meanwhile, is preparing to act if the merger appears likely to succeed, according to...

Comments are closed.