Broadcom’s takeover attempt of Qualcomm has been delayed by a pending US investigation
Broadcom’s takeover attempt of Qualcomm has been delayed by a pending US investigation
Now Broadcom has officially announced their takeover strategy, which will require them to gain the support for Qualcomm’s shareholders, making the takeover a discussion topic during Qualcomm’s next shareholder’s meeting. This meeting was scheduled to take place today, but now the meeting has been postponed, pending an investigation into Broadcom’s bid by the US Committee on Foreign Investment (CFIUS).
Qualcomm has allegedly filed for the investigation voluntarily, with Broadcom calling it a “blatant, desperate act”. At this time Qualcomm’s shareholder meeting has been delayed until May 6th, a month-long delay.
Broadcom is currently in the process of moving their HQ into the US, moving its Corporate Headquarters from Singapore, which means that the company will soon not be under the oversight of CFIUS, as Broadcom LTD will be a US-based company through and through.
Broadcom continues to pursue the redomiciliation process as expeditiously as possible, Upon completion of the redomiciliation, Broadcom’s proposed acquisition of Qualcomm will not be a CFIUS covered transaction
Right now Broadcom wants to sway six members of Qualcomm’s board of directors, allowing them to force a buyout of the company. So far, Qualcomm has not been keen on any of Broadcom’s offers, mostly because they see the company as being more valuable and don’t think the benefits offered by the merger as worthwhile.
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