President Donald Trump has blocked Broadcom’s hostile takeover attempt of San Diego’s Qualcomm on the grounds that a deal “threatens to impair the national security of the United States.”In an unusual preemptive order issued late Monday, Trump prohibited Broadcom from continuing with its hostile takeover efforts to gain control of Qualcomm’s board of directors. The $117 billion deal would have been the largest ever completed in the technology industry.“There is credible evidence that leads me to believe that Broadcom Ltd.,” by acquiring Qualcomm, “might take action that threatens to impair the national security of the United States,” Trump said in the order.The move came after Broadcom’s attempts to speed up the relocation of its corporate headquarters from Singapore to the U.S. — which could have derailed the jurisdiction of the Committee for Foreign Investment in the U.S. to investigate on national security grounds. … [Read more...] about President Trump blocks Broadcom’s bid to acquire Qualcomm
Broadcom hostile takeover
Qualcomm said Friday it won’t include information on any of Broadcom’s 11 proposed alternative candidates for its board of directors in proxy materials it sends to shareholders, an expected move in the hostile takeover fight between the two semiconductor giants.Last month, Qualcomm’s board rejected Broadcom’s $70 per share buyout offer, saying it significantly undervalues Qualcomm. That prompted Broadcom to nominate its own candidates to challenge all 11 members of Qualcomm’s board.In preliminary proxy materials filed with the U.S. Securities and Exchange Commission, Qualcomm said its corporate governance committee rejected Broadcom’s board nominees, which means the company’s proxy materials sent to shareholders won’t include ballots for Broadcom’s nominees.But Broadcom is expected to send Qualcomm shareholders ballots itself for its candidates. So Qualcomm shareholders can vote for Broadcom nominees. Earlier this month, Broadcom … [Read more...] about Qualcomm rebuffs Broadcom’s board candidates in early proxy
The battle lines in Broadcom’s hostile takeover bid of Qualcomm are still being drawn, but analysts see a handful of pivotal issues that could tip the scales for each side. Here’s what Qualcomm must do.Convince its fatigued shareholders that it’s more valuable than Broadcom’s offer of $70 per share.Complete its pending $38 billion acquisition of NXP Semiconductors to diversify beyond smartphones.Mend its ailing patent licensing business.Tell a 5G growth storyHighlight the regulatory hurdles of a Qualcomm/Broadcom mergerMake its case quickly. Shareholders will decide by March 6 annual meeting.What might Qualcomm do: The full storyWhen Broadcom proposed ousting Qualcomm’s board of directors on Dec. 4, it set in motion a high stakes chess match for control of San Diego’s most iconic technology company.The outcome could reverberate not only locally but throughout the tech industry — possibly changing the landscape for firms ranging from Apple to … [Read more...] about Hostile takeover: What might Qualcomm do to fend off Broadcom?
Broadcom has set its sights on acquiring a well-known name in cybersecurity software, in a further strategy shift after President Donald Trump's administration blocked it last year from purchasing another chipmaker on national-security grounds. The semiconductor giant is in advanced discussions to buy Symantec, which makes anti-virus software and other products, two people briefed on the matter said Wednesday. Any deal would most likely value Symantec at more than $15 billion, they said. A transaction could be announced in the coming days, though the people warned that negotiations were still taking place and could fall apart. A Symantec spokesman declined to comment, while a Broadcom representative did not immediately return a request for comment. The talks were earlier reported by Bloomberg News. If an agreement is reached, it will underline how much Broadcom has had to change its acquisition strategy after the defeat of its $117 billion bid last year to buy Qualcomm, the world's … [Read more...] about Broadcom in bid to buy Symantec, sources say
By Asa Fitch WSJ Tripp Mickle WSJ Mon., April 1, 2019 Paul Jacobs, who was ousted a year ago as a Qualcomm Inc. director, has dropped his effort to take the chip giant private, instead choosing to focus on his networking startup just an eight-minute drive from his old employer. The long-shot takeover plan had threatened to pit the former chairman against the company he once led as chief executive and that his father helped found more than three decades ago. He said he is throwing his energy into the wireless-technology startup Xcom Labs Inc., where he is CEO and which recently made its first acquisition. The decision marks a reversal for Mr. Jacobs, who had begun gathering financing but decided late last year Qualcomm’s valuation—the company’s market capitalization is currently $68 billion—relative to its earnings had become less attractive. If successful, it likely would have been the largest tech acquisition ever, eclipsing Dell … [Read more...] about Paul Jacobs Retreats From Qualcomm Takeover Quest