Trump blocks hostile take over

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Skeeve
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Trump blocks hostile take over

Post by Skeeve » Tue Mar 13, 2018 5:31 pm

Trump Orders Broadcom to Cease Attempt to Buy Qualcomm
President Donald Trump on Monday blocked Broadcom Ltd.’s $117 billion hostile bid for Qualcomm Inc., capping a remarkable series of moves by the Trump administration reflecting officials’ concerns about an intensifying arms race between the U.S. and China over advanced technologies.

While Broadcom is a Singapore-based company, the U.S. panel that vets foreign deals said that the bid could have had implications for the U.S.’s broader technological competition with China. That panel, the Committee on Foreign Investment in the U.S., known as CFIUS, said it was worried that Broadcom would stymie research and development at Qualcomm given its reputation as a cost-cutting behemoth. CFIUS said such a move could weaken Qualcomm—and thereby the U.S.—against foreign rivals racing to develop next-generation wireless technology known as 5G, such as China’s Huawei Technologies Co.

Broadcom, which launched its hostile bid for Qualcomm in November in what could have become the technology industry’s biggest-ever deal, was working to redomicile in the U.S. to evade the panel’s review. But the presidential order effectively ended its acquisition hopes.

Broadcom, which has said it would invest in Qualcomm’s 5G technology if a deal went through, said late Monday it was reviewing the order. “Broadcom strongly disagrees that its proposed acquisition of Qualcomm raises any national security concerns,” it said in a statement.
I suspect the picture below was from the "Broadcom is bringing jobs back to the USA" days....
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Broadcom Chief Executive Hock Tan stood with Mr. Trump at the White House in November to announce that Broadcom planned to redomicile in the U.S. Mr. Trump called Mr. Tan “a great, great executive” and said Broadcom was “one of the really great, great companies.”

Now, Mr. Trump’s order leaves Broadcom little choice but to move on. Broadcom’s options are “not many, and not good,” said Michael Gershberg, an attorney with Fried, Frank, Harris, Shriver & Jacobson LLP, who has experience with CFIUS cases. “There may be avenues for the companies to work together in other kinds of arrangements, but anything that looks like Broadcom controls Qualcomm, especially around the 5G business, CFIUS will be alert to.”
Then Skank Of America could start in...

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corplinx
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Re: Trump blocks hostile take over

Post by corplinx » Tue Mar 13, 2018 6:21 pm

Protectionism, Tariffs, blocking mergers;

Trump is the best Democrat president ever.

What?

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Skeeve
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Re: Trump blocks hostile take over

Post by Skeeve » Mon Mar 19, 2018 3:51 pm

Update:
Qualcomm’s war may be over, but the casualties are just starting to be calculated

The epic battle between Qualcomm and Broadcom seems to have reached its armistice, with President Trump using the power of CFIUS to block the transaction this past week, ending what would have been the largest tech M&A transaction of all time.
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Broadcom was winning the battle with shareholders, so Qualcomm’s board shifted to a terrain far more favorable to it: Washington bureaucrats. From the same Bloomberg report, “Federal lobbying disclosures for 2017 showing that Qualcomm spent $8.3 million, or roughly 100 times the $85,000 Broadcom spent…” These weren’t regulators; these were friends.
Nice to know Washington parasites can still be brought....just bring your checkbook....
Then Skank Of America could start in...