The government of the United States estimates the bid for high Qualcomm: it is possible to stop the deal
Reuters, citing 3 people, said the US Foreign Investment Commission (CFIUS) has begun to assess the plan for the acquisition of Qualcomm. Bo Tong is a Singapore - based chip company, which intends to buy Qualcomm. If the deal threatens the national security of the United States, CFIUS has the right to stop it.
According to one insider, CFIUS has contacted at least one of the companies around the merger problem. Two other people familiar with the matter said they met last month to discuss possible merger transactions between two large semiconductor companies.
The letter showed that John Conne, the two member of the Republican Party in the Senate (John Cornyn), put forward a request to the finance minister Steven Nouchine (Steven Mnuchin) on Monday. He urged CFIUS to evaluate the proposal before March 6th's shareholder vote.
It's rare for CFIUS to intervene before the deal is reached. The discussion suggests that Broadcom to prepare the first headquarters to the United States, and then to complete the acquisition of Qualcomm, but it still can not avoid the national security assessment and evaluation may make a deal.
The letter from Kangnai, the main concern is CFIUS, failed to agree with Qualcomm Broadcom; in desperation, it had taken a hostile takeover means, put out 6 candidates for the board, they will want to move to the board of directors and Qualcomm Qualcomm, a total of only 11 directors of the board of directors.
If the 6 nominees were successfully elected in March 6th, they would be able to control Qualcomm. All this will be done before the CFIUS assessment or the antitrust assessment is completed.
Although CFIUS's assessment of the transaction does not necessarily mean that the transaction will stop. Linley Group microprocessor expert Ge Wenna (Linley Gwennap) says that in several fields, Qualcomm has the world's most advanced chips. "Qualcomm is the crown of the American semiconductor industry," he said. I think CFIUS may have a protective posture... Although Singapore is a friendly state in name, it is still dangerous to flow abroad with such advanced technology. "
He refused to comment on CFIUS's move, and the company only stressed that, once it was licensed, it would continue to move to the United States and move to the United States. It is estimated that a permit may be obtained in March 6th.
The lawyer, who knows the CFIUS idea, has revealed that it is rare to move the company to the United States to avoid the CFIUS review, even if it was not unprecedented. Is it useful to do this? It may really be useful. An expert who doesn't want to reveal his name thinks that after moving to the United States, he can become an American company. If CFIUS wants to review, he will also hope to be an American company at a legal level.
However, it was also warned that CFIUS may evaluate the board of directors and investigate the identity of the major shareholders, so as to determine whether the company's control rights are outside the US.