Broadcom Seen Staying on Deal Path Despite Trump's Qualcomm Halt

Trump blocks Broadcom from acquiring Qualcomm

The president issued an order to block the $117 billion Qualcomm buyout, effectively killing what could have been among the biggest tech deals in history.

Also of note, China's minister for information technology said in an interview last week that the country is already preparing for the development of 6G technologies. "Broadcom strongly disagrees that its proposed acquisition of Qualcomm raises any national security concerns", it said in a statement.

Analysts said Broadcom can still build heft through smaller deals and could have an easier time buying United States targets if it goes through with plans to redomicile in the US.

The Committee on Foreign Investment in the United States (CFIUS), which raised concerns about the Qualcomm deal with Trump, listed the highly leveraged nature of Broadcom's bid for its larger rival as a major concern coupled with the risk of the U.S. losing mobile technology leadership.

One of the key concerns CFIUS laid out about the Qualcomm bid was Broadcom's "relationships with third party foreign entities and the national security effects of Broadcom's business intentions with respect to Qualcomm", according to a March 5 letter that a CFIUS official wrote to the companies' lawyers that was disclosed to the Securities and Exchange Commission. CFIUS said such a move could weaken Qualcomm - and thereby the USA - against foreign rivals racing to develop next-generation wireless technology known as 5G, such as China's Huawei Technologies Co. "While the USA remains dominant in the standards-setting space now, China would likely compete robustly to fill any void left by Qualcomm as a result of this hostile takeover".

Shares of Qualcomm slid more than 4 percent in early trading Tuesday.

White House fires top Tillerson aide Steve Goldstein
Lawmakers noted that it's uncertain whether Haspel or Pompeo can muster the 60 votes necessary for their Senate confirmations. Regarding Pompeo, who served in the House from 2011-2017, Graham said he's a flawless pick to lead the State Department.

India seeks to promote solar energy throughout the world
Progress is clearly happening quickly: During 2017 alone, India doubled its installed solar capacity from 10 GW to 20 GW. The solar energy sector, facing a challenge of funding, received considerable support at the conference.

IndiGo cancels 65 flights after DGCA order, offers full refund to flyers
IndiGo, which cancelled 47 flights, operates 1,000 flights a day while GoAir cancelled 18 out of its 140 flights per day. The DGCA today said there are 45 A320 neo - 32 with IndiGo and 13 with GoAir - fitted with P&W 1100 engines.

A source familiar with CFIUS' thinking had said that, if the deal was completed, the U.S. military was concerned that within 10 years, "there would essentially be a dominant player in all of these technologies and that's essentially Huawei, and then the American carriers would have no choice". "Huawei is now not just the leading provider in the world's largest telecommunications equipment, but also a dominant player across the planet", Bloomberg explains.

Meanwhile, Broadcom announced today that is has accelerated its timetable for redomiciling its organization from Singapore to the US, moving up the date from May 6 to April 3.

The last deal Mr. Trump blocked was Chinese government-backed Canyon Bridge Capital Partners' attempt to buy Portland, Ore. -based Lattice Semiconductor Corp.

"If Broadcom completes its redomiciling in the United States in a way that extinguishes any non-US ownership or control, then I think they can open the door to many, if not all, acquisitions. they would effectively no longer be subject to a CFIUS-initiated review or investigation", said Guillermo Christensen, a lawyer who works on CFIUS issues at Brown Rudnick in Washington.

Broadcom had struggled to complete its proposed deal to buy Qualcomm, which had cited several concerns including the price offered and potential anti-trust hurdles.

Related:

  • Idaho teacher accused of feeding puppy to snapping turtle

    Idaho teacher accused of feeding puppy to snapping turtle

    Este Hull, a seventh-grader at the school, said she has only known Crosland to feed his animals mice or birds. Even if the puppy was going to die, though, Parrish doesn't think this was the way to do it.
    Man Utd have made Robert Lewandowski approach, Real Madrid 'dithering' - journalist

    Man Utd have made Robert Lewandowski approach, Real Madrid 'dithering' - journalist

    Lewandowski is 29 now and Bayern have benefitted from his best years since he made the move from Borussia Dortmund in 2014. It is hard to say what weakness he has and what he still needs to improve", the former Stuttgart and Lyon player said.
    John Brown: Joining forces with Ravens

    John Brown: Joining forces with Ravens

    Brown has spent the last four years with the Arizona Cardinals, where he posted 21 catches for 299 yards in 10 games last season. Brown tended to health concerns in both 2016 and 2017, most notably a sickle-cell trait that sapped his previous explosiveness.
  • Amitabh Bachchan unwell, doctors rushed to Jodhpur

    Amitabh Bachchan unwell, doctors rushed to Jodhpur

    Earlier, Bachchan had written on his blog about being unwell and getting his team of doctors to Jodhpur . Thugs of Hindostan is helmed by Vijay Krishna Acharya who entertained the audience with the films Dhoom .
    Jose Mourinho hits back at Frank de Boer over Marcus Rashford

    Jose Mourinho hits back at Frank de Boer over Marcus Rashford

    Rashford certainly boosted his chance of earning another start against Sevilla in the Champions League on Tuesday. I said that before the Liverpool match when many of you were maybe not expecting him to start.
    Case Keenum Reportedly Ready To Sign With Broncos

    Case Keenum Reportedly Ready To Sign With Broncos

    The Broncos are two seasons removed from a Super Bowl title won in Peyton Manning's final National Football League season. If he does well again, he would go a long way in justifying Denver's decision to basically snub Cousins in free agency.
  • White House to help arm school staff

    White House to help arm school staff

    At a political rally Saturday night in Pennsylvania, Trump mocked the idea of commissions to solve the nation's drug epidemic. He told other senators in January he was ready to back a bipartisan immigration bill until he reversed course within hours.
    Aamir Khan to join Instagram on his 53rd birthday

    Aamir Khan to join Instagram on his 53rd birthday

    The actor is now filming Thugs Of Hindostan , which also stars Amitabh Bachchan , Katrina Kaif and Fatima Sana Shaikh. But with Instagram, his fans will be able to see what is happening in his routine life in the form of pictures.

    Stocks Alert: Ross Stores Inc. (ROST), Apache Corp

    State Board Of Administration Of Florida Retirement Systems invested 0.1% in Ross Stores, Inc . (NASDAQ: ROST ) for 81,300 shares. They just need to take the company's market capitalization and divide it by the company's total sales over the past 12 months.
  • Trump sacks Rex Tillerson, appoints CIA chief Mike Pompeo Secretary of State

    Trump sacks Rex Tillerson, appoints CIA chief Mike Pompeo Secretary of State

    The other, Undersecretary for Political Affairs Tom Shannon, plans to retire when his successor is confirmed. In remarks to reporters Tuesday, Trump highlighted his differences with Tillerson on Iran and North Korea .
    Time for new government to get to work

    Time for new government to get to work

    Russian Federation sanctions could be "discussed", she said - if there's "qualitative progress" in eastern Ukraine. Meanwhile, the world awaits more news on kind gestures between politicians.
    Bypolls: SP takes lead in UP's Gorakhpur, Phulpur; NDA leading in Bihar

    Bypolls: SP takes lead in UP's Gorakhpur, Phulpur; NDA leading in Bihar

    At the end of round 2, the SP took a lead of 1,500 votes, after which the SP kept on increasing its lead. After 11 rounds in Phulpur , the SP is at 1,22,247 votes, while the BJP is at 1,06,534 votes.

Comments

Latest news

3 arrested on gun charges suspected in Minnesota mosque bombing
McWhorter told a law enforcement official that during the attempted bombing at the Women's Heath Practice in Champaign, Ill., Mr. When the Minnesota bomb attack occurred in the predawn hours of August 5, 2017 a dozen people were gathered for morning prayers.

Halep and Venus into Indian Wells quarters, Wozniacki falls
After recently taking back the world No. 1 ranking from Caroline Wozniacki , Halep is off to a fantastic start at the tournament. Halep called for a timeout in the first set so her coach Darren Cahill could come down to the court to discuss strategy.

Ubisoft Rumored To Be Making A New Splinter Cell Game
The listing specifically mentioned "E3 Splinter Cell " and called the game " Splinter Cell 2018 " with Ubisoft's name attached. The Amazon page simply lists the game as Tom Clancy's Splinter Cell 2018 by Ubisoft, with no additional details.

Tim McGraw Returns to US After Dublin Stage Collapse
Country music superstar Tim McGraw collapsed on stage at a recent festival in Dublin, Ireland, unable to return to his fans. Tim McGraw (right) stepped out with wife Faith Hill in his first public sighting since he collapsed onstage mid-show.

Official Fantastic Beasts: The Crimes of Grindelwald teaser trailer
It seems to have intense dark vibes and that is very exciting when it comes to what looks like a wizard battle. In addition, fans will find it comforting that the original author J.K.

'Cameron is not retiring from anything,' clarifies Selma
However, Selma Blair has now clarified over Twitter that Diaz is not retiring from acting, and what she said was a "joke". Diaz, who Wednesday musician Benji Madden in 2015, hasn't appeared in a movie since the 2014 remake of Annie .

South Korean ex-president Lee Myung-bak questioned on graft
The ex-president rose to political power after a successful career as chief executive of Hyundai Engineering & Construction Co. He hoped that he is the country's last president in history to be investigated by prosecutors.

Pakistan, Iran to strengthen ties: Maleeha
Similarly, renewable energy projects in Thatta, Jamshoro and Sukkur offer a great opportunity to the investors", he said. Future rows between India and Pakistan will place Iran in a mediatory role.

Defence Budget 'Insufficient', Army Expresses Frustration
He pointed out that 68 per cent of the Army's equipment of vintage category and only 8 per cent in the "state of the art" category.

Hunter makes his pitch, helps Phillies land Jake Arrieta
Arrieta said he has been throwing 50-65 pitch bullpen sessions every two or three days. "I feel like we're not that far away". They're expected to make a strong push for Bryce Harper or Manny Machado next offseason.

Google to stop displaying crypto ads
Google also revealed that it removed 2 million pages for policy violations every month in 2017. It also blocked almost 90,000 websites and 700,000 mobile apps for policy violations.

Ford Motor (NYSE:F) Earns Hold Rating from BMO Capital Markets
It is positive, as 10 investors sold ROG shares while 63 reduced holdings. 73 funds opened positions while 223 raised stakes. The company has a market cap of $53,000.00, a price-to-earnings ratio of 7.35, a P/E/G ratio of 0.72 and a beta of 1.60.

Physicist Stephen Hawking Dies at Age 76
Hawking discovered the phenomenon which became known as Hawking radiation, where black holes leak energy and fade to nothing. Jane cared for Hawking for 20 years, until a grant from the United States paid for the 24-hour care he required.

BJP ahead in Araria, Bhabua; RJD in Jehanabad
According to latest updates , BJP is leading in the Araria Lok Sabha constituency by 1749 votes after 10 rounds of counting. The bye-election to the Araria seat was necessitated after the death of sitting RJD lawmaker Mohd Taslimuddin.

Selena Gomez's Mom Has Nothing To Do With the Latest Jelena Breakup
The couple rekindled their childhood romance last Fall, following Selena's split from rapper The Weeknd in October. Gomez who is 25 years of age is report not to have had contact with her mum, Teefey recently.

Other news