Trump Puts the Kibosh On Broadcom's Qualcomm Bid
President Trump today issued an order that prevents Broadcom from purchasing Qualcomm. Trump cited national security as his reason behind the order. "The proposed takeover of Qualcomm by the Broadcom is prohibited, and any substantially equivalent merger, acquisition, or takeover, whether effected directly or indirectly, is also prohibited," said the president. Trump suggested there was credible evidence that the deal "might take action that threatens to impair the national security of the United States." Qualcomm has so far rebuffed Broadcom's efforts, chiefly citing sale price. The proposal was under CFIUS review, given Broadcom's status as a foreign company. Broadcom is in the process of repatriation, but it doesn't expect to complete the process until early April. Broadcom did not immediately comment on the President's order.
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.
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.
Mar 9, 2018
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.