Broadcom said Monday it expects to complete its redomicile to the U.S. by April 3, two days prior to the new date for Qualcomm’s annual shareholder meeting.
Broadcom, currently based in Singapore, announced the plan to move its headquarters back to the U.S. in November, and has since made unsolicited bids to acquire Qualcomm. Broadcom said Monday that its proposal to acquire Qualcomm “has always been premised on the completion of Broadcom’s previously announced plan to redomicile.”
Broadcom is stressing that point after the U.S. Treasury Department’s Committee on Foreign Investment in the United States (CFIUS) issued in interim order to Qualcomm to postpone the company’s’ annual stockholder meeting, which was originally was set to occur on March 6. At the meeting, currently set for April 5, Broadcom is attempting to elect six nominees to Qualcomm’s board.
Following up a position held last week, Broadcom said Monday that U.S. national security concerns are not a risk to closing its proposed acquisition of Qualcomm.
“In addition, as a company incorporated in the U.S., Broadcom looks forward to working directly with the U.S. government as a trusted supplier, and continuing Qualcomm's existing engagement,” Broadcom added.
Update:Reporting Monday on Squawk on the Street, CNBC’s David Faber said CFIUS is “not happy” with Broadcom, as it had issued a letter to Broadcom that the company had violated an interim order issued in March by CFIUS because Broadcom, on at least three separate occasions, had taken action toward redomiciliation in the U.S. without providing the organization with at least five business days notice. Faber said Broadcom and CFIUS officials plan to meet Monday to cover these issues, and that this marks Broadcom’s last opportunity to tell CFIUS why it should not refer the proposed deal to the President of being blocked.
Broadcom shares were up 3.18% ($8.06) to $261.84 each in Monday morning trading.
Qualcomm recently provided Broadcom a “mark-up” to the Broadcom proposal that, Qualcomm believes, could resolve all of the issues, save for the price, which it believes continues to undervalue Qualcomm.
Serving up a possible complication to Broadcom’s plans, Intel is considering several M&A moves, including a possible bid for Broadcom, should Broadcom’s hostile play for Qualcomm appear to be headed toward failure, according to The Wall Street Journal.
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