Broadcom return to USA could be complete in May

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Despite Broadcom's plans to move back to the United States, CFIUS has already shown an interest in the proposed transaction because Broadcom has proposed six directors for Qualcomm's 11-member board.

Qualcomm shareholders were set to vote on Broadcom's proposed acquisition of Qualcomm at the meeting, but Qualcomm management sought a delay through CFIUS, an inter-agency regulator led by the U.S. Treasury Department.

A USA national-security panel on March 4 ordered Qualcomm to put off its March 6 annual shareholder meeting, delaying a long-awaited showdown in the chipmaker's attempt to see off a takeover bid by Broadcom.

The US government has put the dampers on a heated battle for digital chipmaker Qualcomm, citing national security concerns. Qualcomm's board has rejected the offer, and a few days ago it urged shareholders to reelect its members at the annual shareholder meeting that had been scheduled for March 6.

The ongoing saga of Broadcom's attempts to acquire Qualcomm began late past year, with an initial offer of $103bn, which Qualcomm angrily rejected.

Broadcom slammed Qualcomm's decision to "secretly" file a voluntary request with CFIUS to start an investigation, labelling it a "blatant, desperate act" to entrench its incumbent board of directors.

"It is critical that Qualcomm stockholders know that Qualcomm did not once mention submitting a voluntary notice to CFIUS in any of its interactions with Broadcom to date", Broadcom said. This can only be seen as an intentional lack of disclosure-both to Broadcom and to its own stockholders. Broadcom has accused Qualcomm of failing to negotiate seriously, saying they were involved in "engagement theater".

Once Broadcom re-domiciles in the United States, now planned for no later than 6 May, the takeover would not be a CFIUS covered transaction.

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