Feb 28, 2018

Senator asks regulators to review Broadcom's bid for Qualcomm

Dan Primack, author of Pro Rata

Illustration: Rebecca Zisser / Axios

Sen. John Cornyn (R-TX) on Monday sent a letter to Treasury Sec. Mnuchin, asking that the Committee for Foreign Investment in the U.S. (CFIUS) review Broadcom's proposed takeover of Qualcomm. His big concern is that the deal could result in a controversial Chinese company with effective control over U.S. telecom infrastructure, via future development of 5G technology.

Why it matters: This is a highly unusual request, and not only because the two chipmakers haven't yet agreed to merge.

Cornyn wants CFIUS to act prior to a March 6 vote in which Qualcomm shareholders will be asked to accept or reject a slate of directors proposed by Broadcom. In other words, he's asking CFIUS to possibly preempt a proxy fight. We've so far been unable to find a related precedent.

  • It's unclear how CFIUS will account for Broadcom's announced plans to redomicile from Singapore to the U.S. This seemed to play in its favor during its smaller purchase of Brocade, but right now it remains just a promise.

Here's the full letter, as obtained by Axios:

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Biden: George Floyd's last words are "a wake-up call for our nation"

Former Vice President Joe Biden meets with clergy members and community activists during a visit to Bethel AME Church in Wilmington, Del. on June 1, 2020. Photo: JIM WATSON/AFP via Getty Images

Vice President Joe Biden is calling George Floyd’s dying words “a wake-up call for our nation,” and criticized President Trump’s decision to unleash tear gas on peaceful protesters outside the White House, in a civil rights speech from Philadelphia on Tuesday.

Why it matters: Biden in the address drew a sharp contrast between himself and Trump, whose first remarks addressing nationwide unrest Monday highlighted law and order, extreme demonstrations of militarized “strength” and other blustery threats.

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Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 11 a.m. ET: 6,302,318 — Total deaths: 376,322 — Total recoveries — 2,716,924Map.
  2. U.S.: Total confirmed cases as of 11 a.m. ET: 1,812,125 — Total deaths: 105,192 — Total recoveries: 458,231 — Total tested: 17,340,682Map.
  3. Public health: Protests against police brutality threaten coronavirus response.
  4. Business: Coronavirus could lower GDP by $15.7 trillion — More than 1 in 6 black workers lost jobs between February and April.
  5. Climate: The alarm over climate financial risk gets louder because of coronavirus.
  6. Media: Interest in the George Floyd protests has soared past the coronavirus.

The business of tear gas

Illustration: Eniola Odetunde/Axios

U.S. forces yesterday used tear gas on peaceful protesters outside the White House gates, prior to a declared curfew, clearing a path for President Trump to visit a riot-damaged church for a photo opportunity.

The state of play: Two of the largest U.S. producers of tear gas are owned by private equity firms, but those firms have no interest in discussing their ownership.