Broadcom says that Qualcomm has connections with Chinese companies and the country's government

Earlier this week, we told you that the the U.S. Treasury’s Committee on Foreign Investment in the United States (CFIUS) took the extraordinary step of commenting on Broadcom’s proposed purchase of Qualcomm, even though the deal had not yet been agreed to. CFIUS usually makes its pronouncements after both parties to a merger have signed on the dotted line. With its release sounding more like a research report issued by a securities firm, CFIUS mentioned its concerns about Broadcom’s reputation as a cost cutter when it comes to R&D budgets, and its position as a foreign company.

While …


Qualcomm has a new Chairman; Broadcom to be a U.S. company on May 6th

With stockholder voting on its 11-member board delayed until next month, Qualcomm has named a brand new chairman of that board. Replacing Paul Jacobs, who was Qualcomm’s CEO from 2005 to 2014, and its executive chairman, is Jeffrey Henderson. On the company’s board since 2016, Henderson also worked at Cardinal Health Inc. as finance chief. He will be given the title of non-executive chairman. Jacobs will remain on the chip maker’s board.

With Qualcomm still the object of Broadcom’s desires, there is thought that by adding a non-executive independent chairman to the board, the company’s stockholders …

Amid 30-day delay on Qualcomm's stockholder vote, Broadcom might have to pull its bid

Today, Qualcomm stockholders were supposed to vote on the make up of the company’s Board of Directors. With 11 seats on the Board, Broadcom lobbed in a slate of 6 candidates, hoping that it could win control of Qualcomm and rubber stamp Broadcom’s $117 billion bid for the Snapdragon chip designer. But some other news has come out that might force Broadcom to put the kibosh on its bid for now, and try again at another time.

The U.S. Treasury’s Committee on Foreign Investment in the United States (CFIUS) sent a letter to two Broadcom lawyers on Monday, outlining some issues it had with the …

Qualcomm says that for $160 billion, it will agree to a purchase by Broadcom

The last time we checked in on the soap opera that is Broadcom’s attempt to acquire Qualcomm, the latter had just raised its bid for auto chip maker NXP by 16% to $44 billion. That made Broadcom a little ticked off, to say the least. So the wireless and telecom chip provider decided to cut its offer for Qualcomm by 4% to $117 billion, or $79 a share from the previous $82 a share bid.

But all of this financial maneuvering is covering up what is really going on here. On March 6th, Qualcomm stockholders vote for the company’s Board of Directors. There are 11 seats on the board, and Broadcom …

Qualcomm raises its bid for NXP, so Broadcom lowers its offer for Qualcomm (VIDEO)

After Qualcomm on Tuesday hiked its offer for auto chip producer NXP by 16% to $44 billion ($127.50 a share), Broadcom today dropped its bid for Qualcomm by 4% to $117 billion. Qualcomm, which was already complaining that the offer valued the company too low, responded by saying that the move by Broadcom made “an inadequate offer even worse.” The new, lowered bid works out to $79 a share, down from the previous $82 a share bid.

Broadcomm can still end up with its target depending on the outcome of a Qualcomm stockholder vote scheduled for March 6th. Broadcom has put up a slate of …

Qualcomm raises bid for auto chip maker NXP to $44 billion; Broadcom could hike offer for Qualcomm

Way before Broadcom made its initial bid for fellow chipmaker Qualcomm in November, the latter had gone after NXP Technologies. Qualcomm proposed a transaction for the largest producer of chips for automobiles, valued at $110 a share, back in October 2016. Since then, the deal has been approved by regulators around the world except in China. The regulatory agency in that country has yet to weigh in with a response.

While regulators have given the deal a thumbs up, NXP stockholders weren’t as happy with the price offered by Qualcomm. So this morning, the company raised its bid for NXP to …

Investment advisory firm recommendation could force Broadcom to negotiate deal with Qualcomm

Institutional Shareholder Services (ISS) is an advisory firm that recommends to mutual funds, hedge funds and other big institutional investors, how they should vote on certain company matters. On Saturday, ISS weighed in on the proxy battle between Broadcom and Qualcomm related to the former’s $82 a share bid for the latter. As we told you a little over a week ago, Qualcomm rejected Broadcom’s “best and final offer” of $82 a share for Qualcomm. That deal is structured so that Qualcomm holders receive $60 in cash and $22 in Broadcom stock for each Qualcomm share they own.

Besides taking …

Qualcomm and Broadcom to meet on Valentine's Day to talk marriage

Qualcomm has told Broadcom that it has rejected its “best and final offer” of $121 billion because of several factors. One is valuation. Qualcomm believes that it is worth more than a cash and stock bid of $82 a share. In addition, Qualcomm has stated that if a deal is agreed to and government regulators refuse to clear it, the company will be “enormously and irreparably damaged.” As a result, the company wants to have a break-up fee in place that is higher than the usual 3%-4% of the transaction’s value. Broadcom has reportedly agreed to an $8 billion fee, which is 6% of the deal’s value.

As …

Qualcomm says it will lose two big customers if acquired by Broadcom

Last Thursday, we told you that Qualcomm had rejected Broadcom’s $121 billion offer to buy the company. The $82 a share bid includes $60 in cash and $22 in Broadcom stock, and reportedly features a higher than average break-up fee. This is a cash settlement that Qualcomm would receive in case U.S. regulators decide not to clear a transaction between the two chipmakers. In a published letter from Qualcomm Chairman Paul Jacobs to Broadcom president and CEO Hock Tan, Jacobs mentioned two things that prevent Qualcomm from agreeing to the deal. One is valuation, and the second is “deal certainty.”

Qualcomm …

Qualcomm rejects new bid from Broadcom

On Monday, chipmaker Broadcom raised its unsolicited bid for Qualcomm to $82 a share from $70. Broadcom said that it would pay $60 in cash and $22 of Broadcom stock for each Qualcomm share. On Thursday, the latter’s Board of Directors rejected the bid, stating that it undervalued the company, which is known for its Snapdragon line of chips for mobile devices.

In a letter from Qualcomm Chairman Paul Jacobs to Broadcom president and CEO Hock Tan, Jacobs wrote that Qualcomm has offered to meet with Broadcom to “address the serious deficiencies in value and certainty in its proposal.” However, …