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Broadcom's $117 billion offer to buy California-based Qualcomm
is being reviewed by the Committee on Foreign Investment in the
United States (CFIUS) for potential national security threats.
Broadcom said such security concerns were not a risk to the
closure of the proposed buyout as it never planned to finish the
deal before completing moving its official base to the United
States.
Broadcom is incorporated in Singapore and co-headquartered there
and in Irvine, California.
Broadcom said last week that CFIUS has ordered the company to
provide it with five business days' notice before taking any
action toward moving base to the United States.
The requirement showed that CFIUS, an inter-agency panel led by
the U.S. Treasury, was aware that its jurisdiction could be
contested if Broadcom redomiciles to the United States.
CFIUS had delayed Qualcomm's annual meeting by a month to April
5. In that meeting, shareholders will also vote for Broadcom's
slate of six nominees for Qualcomm's 11-member board.
Since disclosing its first bid, worth $103 billion, for Qualcomm
on Nov. 6, Broadcom has revised its bid twice, but is yet to
strike a deal.
Days before the first bid in November, U.S. President Donald
Trump said Broadcom planned to redomicile to the United States
from Singapore.
(Reporting by Supantha Mukherjee in Bengaluru; Editing by Arun
Koyyur and Savio D'Souza)
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