Set micro-network March 6 comprehensive report of US government affairs on Sunday to Qualcomm issued a temporary ban, requiring the latter to postpone its originally scheduled for March 6, the annual general meeting of shareholders, but also for Broadcom proposed the acquisition of a great deal The variables.
This is seen as the official intervention by the U.S. regulatory agencies in the dual-channel case and the U.S. government's concern about information security in the field of semiconductor science and technology. The U.S. Foreign Investment Commission (CFIUS) However, it is not uncommon for CFIUS to intervene before both parties have merged.
Qualcomm was originally scheduled to hold its annual general meeting on March 6 to vote on six Broadcom-nominated directors, although Broadcom has long stressed its inability to control six nominees and no intention of controlling Qualcomm's board of directors, Bloomberg reported on Monday All six Broadcom-nominated directors are staunch supporters of the merger.
The postponement of the ban, the new shareholders meeting has not yet announced the time.Bottom has expressed strong dissatisfaction, accused Qualcomm 'secret' in the end of January they volunteered to submit a review request to CFIUS, but not in the two with Broadcom Tell me when negotiating.
Qualcomm did not deny the initiative to seek CFIUS review, but responded that Broadcom is misleading the public, ignoring the merger in the regulatory and national security has a significant impact.
The incident is very important to both Qualcomm and Broadcom, which said that the CFIUS investigation was a trivial one, but Broadcom has actually been investigating the CFIUS for several weeks and has submitted two materials, "Qualcomm said.
Headquartered in Singapore, Broadcom plans to relocate its headquarters to the United States after a vote on the May 6 general meeting of shareholders, thus circumventing CFIUS's audit of overseas companies.
Broadcom emphasizes that almost all of his board members and executive teams are composed of Americans and will be fully committed to the CFIUS investigation.
Last week, several political party members in the United States, including the Defense Department, put pressure on CFIUS to require CFIUS to intervene in the acquisition for national security reasons.
"These pressures will force CFIUS to begin a full investigation into Broadcom's proposed Qualcomm acquisition," the U.S. Treasury said.
Today, the semiconductor industry is fierce competition around the 5G Qualcomm is the leader in this field.Analysts pointed out that if the case of Broadcom's hostile takeover will weaken Qualcomm's leadership in the next 5G, especially in China and Huawei and other enterprises Of the competition at a disadvantage, but also will have an impact on the future of US cyber security.
CFIUS often discourages overseas acquisitions on the basis of national security, but it is not uncommon for CFIUS to enter early after the transaction has been completed and the transaction has not yet entered the substantive stage.
Analysts pointed out that CFIUS's intervention is Qualcomm's hope, which makes Qualcomm have time to complete the acquisition of NXP, while handling patent licensing disputes with Apple, in order to get more shareholder approval before the general meeting of shareholders.