Broadcom Bid Gets U.S. Scrutiny

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CFIUS details concerns over Qualcomm

SAN JOSE, Calif., Mar. 06, 2018 – 

A letter from a U.S. government agency casts a shadow over Broadcom's hostile takeover bid for Qualcomm, saying that it "could pose a risk to the national security of the United States."

The letter from the Committee on Foreign Investment in the U.S. (CFIUS) lays out a case why the acquisition could threaten the U.S. position in wireless communications standards, patents, and products – potentially to the benefit of China. It was dated March 5 and addressed to attorneys from both companies.

The letter came along with delay by 30 days a shareholder meeting on a proxy vote on rival board candidates. In addition, it prevents either company from "taking any action" toward the merger while an investigation is in progress.

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