Broadcom Makes More Promises to Appease US Regulators
Broadcom today said it won't sell anything considered a "critical national security asset" to foreign buyers if its proposed purchase of Qualcomm is approved by U.S. regulators. Earlier this week, the Committee on Foreign Investment in the U.S. (CFIUS) said it would take 30 days to examine Broadcom's proposal. For the moment, Broadcom is based in Singapore and there are limits on what foreign companies can do when purchasing U.S. companies, particularly those that provide services to the government. However, Broadcom is in the process of repatriating to the U.S., which it claims will be complete by May. Broadcom further committed to investing $3 billion in research and $6 billion in manufacturing in the U.S. on an annual basis if its deal is approved. Qualcomm insists Broadcom's current offer undervalues the company. Moreover, the two have not yet come to terms on how Broadcom will handle Qualcomm's licensing business. Broadcom hoped Qualcomm shareholders would elect directors proposed by Broadcom at the company's annual shareholder meeting this week. That meeting was postponed to accommodate the CFIUS review. The process is now on hold while CFIUS conducts its investigation.
Feb 8, 2018
Qualcomm's board of directors today unanimously rejected Broadcom's revised bid to acquire the company for $121 billion. Qualcomm's board continues to insist that Broadcom is undervaluing Qualcomm's overall worth.
Feb 16, 2018
Qualcomm today said Broadcom's acquisition offer simply isn't good enough as currently proposed. The companies met earlier this week to go over some of the finer points of Broadcom's $121 billion bid to purchase Qualcomm, and Qualcomm still came away leery that the deal won't work out.
Mar 5, 2018
The U.S. government ordered Qualcomm to cancel a vote scheduled for Tuesday to allow the government more time to review a potential merger between Qualcomm and Broadcom.
Feb 22, 2018
Broadcom revised its offer to acquire Qualcomm downward by $3 per share after Qualcomm increased its own bid to buy NXP Semiconductors. Broadcom said, "Qualcomm's board acted against the best interests of its stockholders by unilaterally transferring excessive value to NXP's activist stockholders." Broadcom would have preferred to see Qualcomm act together with Broadcom to broker the right deal for NXP while still allowing Broadcom to move forward with its own offer to buy Qualcomm.