Intel reportedly eyeing Broadcom to thwart Qualcomm buyout

Intel reportedly eyeing Broadcom to thwart Qualcomm buyout

The Wall Street Journal says Intel is mulling a bid for Singapore-based Broadcom, which has itself launched a record $117 billion takeover offer for Qualcomm.

Sources claiming to be familiar with Intel's plans have stressed that an offer to buy Broadcom is not guaranteed, with at least one unnamed source cited as saying that a Broadcom bid is unlikely. Broadcom's revenue was up 17.1% compared to the same quarter last year. research analysts anticipate that Broadcom will post 17.41 earnings per share for the current fiscal year. Qualcomm, meanwhile, is trying to complete its own takeover of NXP Semiconductors N.V. Early indications showed that Qualcomm was on course to lose majority control of its board to Broadcom, according to information obtained by Bloomberg.

The smartphone chipmaker Qualcomm, which opposes Broadcom's takeover efforts, appealed in January to the US Committee on Foreign Investment in the United States to review the proposed deal.

The committee, chaired by the Treasury Department, requested more information from Broadcom, and without it, said it would consider deferring to Trump for further action.

Among Intel's concerns is that the acquisition would allow Qualcomm to fix its frayed relationship with Apple - one which has fallen apart in recent years over licensing disputes. Intel a year ago bought a company called Mobileye, which develops sensors for autonomous auto features.

Broadcom's CEO, Hock Tan, is a US citizen, and the company said that it is "in all important respects a USA company".

Broadcom said on Friday it expected to complete its move to the United States by May 6.

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The chip maker's move to redomicile in the US would essentially remove CIFUS' jurisdiction over its hostile bid because it would no longer be a foreign firm trying to acquire a USA company.

Broadcom and Brocade had struggled to gain CFIUS' approval for several months, and had to withdraw their application at one point in October.

Broadcom has repeatedly denied that the Qualcomm proposal poses a threat to national security.

In other news, insider Kirsten M. Spears sold 199 shares of the stock in a transaction dated Friday, March 2nd.

Separately, Qualcomm said it discontinued the role of executive chairman and named a new non-executive chairman as it seeks to curry favour with shareholders ahead of a proxy fight with Broadcom, now slated for 5 April.

The result of the attention was a delay to a Qualcomm stockholder meeting where Broadcom hoped the deal would be approved.

The US government typically weighs in on mergers and acquisitions after a deal is reached.

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