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Broadcom has moved back to the U.S. from Singapore, which could allow it to circumvent the mighty power of the Committee on Foreign Investment in the United States (CFIUS), which blocked its takeover attempt of Qualcomm last month. The company's co-headquarters in San Jose, California will become the sole headquarters of the redomiciled company:
Broadcom said on Wednesday it had completed its move back to the United States from Singapore, weeks after President Donald Trump blocked its $117 billion offer to buy Qualcomm on national security grounds.
Broadcom, which was a U.S. company until it was bought in 2016 by Singapore's Avago, had announced its plan to redomicile on Nov. 2, days before making its first offer for Qualcomm.
[...] The move to the United States could allow Broadcom to buy U.S. companies without coming under the scrutiny of the Committee on Foreign Investment in the United States (CFIUS), which has the power to stop deals that could harm national security.
Broadcom had already agreed with CFIUS to redomicile as a condition of approval for its acquisition of Brocade Communications. Knowing this, CFIUS still blocked Broadcom's attempt to acquire Qualcomm:
[Mergers and acquisitions (M&A)] bankers see a crafty defence being conducted by Qualcomm here: first innocently just checking if CFIUS approval for the unsolicited bid might still be needed, even as Broadcom proceeded to redomicile, and then lobbying hard.
"There was every likelihood that Broadcom would win the proxy fight," says an M&A banker at a different firm. "But it appears that Qualcomm has turned over the US Defense Department." This banker continues: "Remember, Broadcom does not have an unusual share register with any controlling Chinese shareholders."
The conclusion of many bankers is that Qualcomm raised enough concerns that the bidder might take such an aggressive, private equity-style, cost-cutting approach to the target's research and development budget, that it might let China's Huawei steal a march in developing 5G telecoms technology.
You may recall that Broadcom's letter to Congress following the block mentioned that the company was committed to making the United States the global leader in 5G.
Also at Nasdaq.
Related: U.S. Government Reportedly Wants to Build a 5G Network to Thwart Chinese Spying
(Score: 5, Informative) by PartTimeZombie on Friday April 06 2018, @02:38AM (2 children)
But is too stupid to understand that the loyalty he was asking for was to the office, not him personally.
That sort of loyalty is what dictators ask for.
(Score: 4, Interesting) by Anonymous Coward on Friday April 06 2018, @05:35AM (1 child)
Rather, any manager. What we are seeing in the Trump administration, is how things work day-to-day in our nation's companies. A CEO with maybe his heart in the right place, but no domain knowledge. Managers that get and retain their jobs based on connections and the favor they enjoy with their boss. Bosses that play favorites with managers and their competitors to prevent anyone from becoming too powerful, or to shake out the weak. An endless supply of people trying to throw the manager off his chair, so that they can try and do it better. Tons of technical peons who may have political reservations with the way the "company" is going, but nobody gives a fuck about them.
Is that worse than business as usual in politics, where there may have been more collegial respect due to the skeletons in each others closets? Don't know.
(Score: 0) by Anonymous Coward on Friday April 06 2018, @10:19PM
People are not paying Hillary 1/10th of her usually speaking prices because she still has the mojo. It is gone. Trump obliterated it.