Qualcomm slays a lion, baits a dragon

President Trump “US Technology is Not for Sale

San Francisco: US President Donald Trump blocked an unsolicited bid by Singapore-based Broadcom to take over smartphone chipmaker Qualcomm, citing national security concerns. That panel, the Committee on Foreign Investment in the US, known as CFIUS, said it was anxious that Broadcom would stymie research and development at Qualcomm given its reputation as a cost-cutting behemoth. A takeover of Qualcomm by Broadcom would have created the world's third-largest maker of microchips, behind Intel and Samsung.

CFIUS, which raised concerns about the Qualcomm deal with Trump, listed the highly leveraged nature of Broadcom's bid for its larger rival as a major concern coupled with the risk of the USA losing mobile technology leadership.

Analysts said Broadcom can still build heft through smaller deals.

Analysts said Broadcom can still build heft through smaller deals and could have an easier time buying USA targets if it goes through with plans to redomicile in the US.

"A shift to Chinese dominance in 5G would have substantial negative national security consequences for the US", CFIUS said.

Sources added that Broadcom will continue with its plan to relocate to the US.

London spoke with SiriusXM's Breitbart News Tonight's co-hosts Rebecca Mansour and Joel Pollak on Monday, describing China as having "the edge" over the USA due to the one-party state's focus on substantive technological innovation over endeavors such as Facebook and Snapchat. He described the CFIUS communication to Broadcom as "unprecedented".

This is the fifth time a U.S. president has blocked a deal based on CFIUS objections and the second deal Mr Trump has stopped since assuming office.

Mets Reassign Former Heisman Winner Tim Tebow To The Minors
Tebow's only hit was a hard single to center off Washington's Erick Fedde on March 2. "The ankle was kind of disappointing". He hit.056 in Grapefruit League play , with 11 strikeouts in 19 plate appearances.

Qualcomm has emerged as one of the biggest competitors to China's Huawei Technologies Co in the sector, making Qualcomm a prized asset. A bipartisan group of 22 House members led by Rep. Robert Pittenger (R., N.C.) - who, along with Senate Majority Whip John Cornyn of Texas has introduced a bill to expand CFIUS's jurisdiction - wrote to the panel in December 2016 to flag the transaction. That could leave the US hobbled in the race to develop next generation, 5G wireless technology, according to people familiar with the matter.

Mr. Trump blocked the deal in September after CFIUS said it raised national-security concerns.

The move had little precedent.

Only five takeovers of American firms have been blocked by US presidents on national security grounds since 1990. The committee also said that the technology of Qualcomm-which makes wireless chips and licenses wireless patents crucial to smartphones and other-was too important to put into the hands of a foreign company with links to China.

Trump's order came as Broadcom was in the midst of moving its headquarters from Singapore to the U.S. Broadcom announced the move in November after its CEO Hock Tan met with Trump at the White House. Tan "a great, great executive" and said Broadcom was "one of the really great, great companies".

"The proposed takeover of Qualcomm by the purchaser (Broadcom) is prohibited, and any substantially equivalent merger, acquisition, or takeover, whether effected directly or indirectly, is also prohibited", the presidential order released on Monday said. "There may be avenues for the companies to work together in other kinds of arrangements, but anything that looks like Broadcom controls Qualcomm, especially around the 5G business, CFIUS will be alert to".

Shares of Broadcom were last up 1.4 per cent in midday trading.

This item was corrected at 12:32 p.m. ET on Tues., March 13, 2018 to show that A bipartisan group of 22 House members wrote to the Committee on Foreign Investment in the U.S.in December 2016, not December of a year ago.

Related:

Comments

Latest news

Exiting Grey's Star Sarah Drew to Co-Headline CBS' Cagney & Lacey Reboot
Tyne Daly and Sharon Gless played the title characters in the original Cagney & Lacey, which ran on CBS for seven seasons. Another reboot is coming to TV, and this time it's the 80s iconic show Cagney & Lacey that will be brought back to life.

White House says Trump still wants gun change
Sarah Sanders, the White House press secretary, has said the President wants to expedite the court process, not circumvent it. "To no one's surprise, the president's words of support for stronger gun safety laws proved to be hollow", said Sen.

Tillerson Skips Trump in Farewell Remarks
Press secretary Sarah Sanders defended the jibe and denied any rift, insisting Trump "made a joke, nothing more than that". It was long rumored that this was in the works because of continual disagreements between Tillerson and the White House.

Buys New Stake in MGM Resorts International (NYSE:MGM)
Patten Group Inc decreased Southwest Georgia Financial Corp (NYSEMKT:SGB) stake by 977 shares to 50 valued at $21,000 in 2017Q3. Telsey Advisory Group has "Outperform" rating and $34 target. (NYSE:T) earned "Buy" rating by Citigroup on Friday, November 10.

Assistant professor shot dead in college premises in Haryana's Sonipat district
However, the exact details behind the incident will come to the fore after a post-mortem of the body. Victim Rajesh Malik, around 35 years of age, was working as an ad-hoc Lecturer in Kharkhoda.

Google to Ban Ads for Cryptocurrency & Initial Coin Offering from June
Additionally, it removed 48m ads that were attempting to get users to install unwanted software. Blocked 12,000 websites with content scraped from legitimate websites, up from 10,000 in 2016.

De Boer is worst manager in history-Mourinho
De Boer, though, suggested after the game that Rashford would be better off playing under a manager other than Mourinho. If he was coached by Frank, he would learn how to lose because he lost every game.

A320neo grounding impact: Airfares shoot up as 65 flights cancelled
The aviation sector in the country may remain affected with IndiGo and GoAir likely to face more disruptions in the coming weeks. In an announcement on its website during the day, IndiGo said it has cancelled 47 flights across its domestic network for today.

Physicist Stephen Hawking, who conquered the stars, dies at 76
In the book he related how he was first diagnosed: "I felt it was very unfair - why should this happen to me", he wrote. After completing his schooling, he went to Oxford University for his undergraduate and later did a Ph.D.at Cambridge.

Iran backs Kashmir cause while telling Pakistan to join Chabahar project
Iran and Pakistan have great relations that is going to be better in the future, said the representative of Pakistan in the UN. The relations suffered more setbacks as 464 Iranian pilgrims were crushed to death in a stampede in Mecca in September 2015.

Apple Buys The 'Netflix For Magazines'
Texture acquisition comes as Apple tries to ramp up its services business which already includes Apple Music and the App Store. In other words, Cue said Apple is focused on the next big thing, rather than the thing that is big now.

US Court Upholds Most Of Texas Law To Punish 'Sanctuary Cities'
Greg Abbott , R-Texas, quickly took to Twitter to announce that the "law is in effect" and that "allegations of discrimination were rejected".

Trudeau waiting to see if Canada gets exemption from new United States tariffs
So if there are those issues with China, let's deal with those, not necessarily make it for everyone to pay these higher costs". He said the difference is "trivial ". "We are looking to make sure that USA companies can compete fairly around the world".

Food Prices to Moderate Downward Inflation Trajectory
Moreover, the manufacturing which has a weight of 77.63 per cent in the IIP is showing the sustenance of the growth momentum. For core CPI, we expect some reversal of the strength in January and forecast an increase of 0.1% m/m and 1.7% y/y.

Cong has anti-democratic mindset, not allowing Parliament to function: BJP
Lok Sabha was adjourned till 12 pm, while Rajya Sabha was adjourned till 2 pm as opposition members try to raise various issues. Sources said the government will take up discussion and voting on demands for grants and the Finance Bill Wednesday.

Other news