Mar 5, 2018

U.S. regulators hit pause on Broadcom bid for Qualcomm

Photo: Simon Dawson/Bloomberg via Getty Images

Broadcom said it is "disappointed" that a shareholder meeting — where it hoped to gain control of Qualcomm's board — will be delayed by a U.S. government inquiry requested by Qualcomm itself.

Why it matters: Broadcom has been seeking control of Qualcomm's board in order to force consideration of its takeover bid, which has thus far been rejected. The shareholder meeting was originally slated for Tuesday.

The Committee on Foreign investment in the U.S (CFIUS). which is reportedly now looking into the issue, is a government panel tasked with looking into overseas investments in U.S. companies. It typically doesn't weigh a transaction until a deal is reached. (TechCrunch has a good explainer on CFIUS here.)

Government action: The government said that a 30-day delay will allow CFIUS "the ability to investigate fully Broadcom’s proposed acquisition of Qualcomm."

  • Last week Axios reported on how Sen. John Cornyn (R-TX) had asked Treasury for a Committee on Foreign Investment (CFIUS) review prior to Tuesday's vote, which would have asked Qualcomm shareholders to pick between director slates proposed by each company. Axios also has seen similar letters sent by Rep. Duncan Hunter (R-CA) to both President Trump and Defense Secretary Mattis.
  • The WSJ's editorial board reported just last night that CFIUS had declined to conduct such a review, which seems to have been incorrect.
  • Broadcom is accusing Qualcomm of surreptitiously asking for a review. No response yet from Qualcomm, but don't be surprised if it takes exception to the claim.

History lesson: Broadcom made a $103 million bid for Qualcomm back in November, which Qualcomm's board rejected. That prompted Broadcom to move in December to seek control of Qualcomm's board.

Also: Qualcomm today extended its tender for NXP Semiconductors to market close Friday. Remember that Qualcomm recently raised the price to both appease NXP shareholders and also to poison the waters for Broadcom.

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U.S. coronavirus updates

Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Andrew Witherspoon/Axios. This graphic includes "probable deaths" that New York City began reporting on April 14.

More than 62,300 U.S. health care workers have tested positive for the novel coronavirus and at least 291 have died from the virus, the Centers for Disease Control and Prevention reported on Tuesday. COVID-19 had infected about 9,300 health professionals when the CDC gave its last update on April 17.

By the numbers: More than 98,900 people have died from COVID-19 and over 1.6 million have tested positive in the U.S. Over 384,900 Americans have recovered and more than 14.9 million tests have been conducted.

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  1. Global: Total confirmed cases as of 11:00 p.m. ET: 5,589,626 — Total deaths: 350,453 — Total recoveries — 2,286,956Map.
  2. U.S.: Total confirmed cases as of 11:00 p.m. ET: 1,680,913 — Total deaths: 98,913 — Total recoveries: 384,902 — Total tested: 14,907,041Map.
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World coronavirus updates

Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Axios Visuals

There are no COVID-19 patients in hospital in New Zealand, which reported just 21 active cases after days of zero new infections. A top NZ health official said Tuesday he's "confident we have broken the chain of domestic transmission."

By the numbers: Almost 5.5 million people have tested positive for the novel coronavirus as of Tuesday, and more than 2.2 million have recovered. The U.S. has reported the most cases in the world (over 1.6 million from 14.9 million tests).