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Qualcomm takeover bid halted by US government

(Image credit: Image Credit: Jejim / Shutterstock)

As if the Broadcom / Qualcomm deal didn't have enough drama of its own, the American Committee on Foreign Investment (CFIUS) joined the fray and effectively stopped any possible takeovers, the media are reporting this Monday.

So what exactly happened? CFIUS asked Qualcomm to delay the Broadcom takeover vote which was supposed to happen on Tuesday. Broadcom cried foul, saying this latest turn of events is an “engagement theatre”, aimed at changing the will of Qualcomm stockholders.

"Broadcom was informed on Sunday night that on January 29, 2018, Qualcomm secretly filed a voluntary request with CFIUS to initiate an investigation, resulting in a delay of Qualcomm's Annual Meeting 48 hours before it was to take place,” it said in the statement.

“This was a blatant, desperate act by Qualcomm to entrench its incumbent board of directors and prevent its own stockholders from voting for Broadcom's independent director nominees."

CFIUS believes this deal might hurt US national security interests.

The Broadcom / Qualcomm deal has been making headlines for quite some time now. First, Broadcom offered Qualcomm a takeover deal worth $103 billion. Qualcomm rejected, saying the price was way below decent. The offer has since been raised, but then dropped again after Qualcomm bought NXP.

Image Credit: Jejim / Shutterstock