Trump blocks hostile Qualcomm takeover

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Today, we are thrilled to welcome @Broadcom CEO Hock Tan to the WH to announce he is moving their HQ's from Singapore back to the United States of America.

President Donald Trump blocked Singapore chipmaker Broadcom from pursuing a hostile takeover of us rival Qualcomm, ruling the proposed combination would imperil national security. CFIUS on Monday recommended that the president veto the deal. It is not clear what rules Broadcom would have to follow if it goes ahead with announced plans to move its headquarters to the United States. Broadcom had said the company is supported by institutions in the USA and its majority directors are from the U.S.

Qualcomm shares sank 4.4 per cent to $60.04 in the after-market.

At last count, Broadcom was offering $117 billion for Qualcomm, with its headquarters based in San Diego.

Samsung Electronics' foundry business is also likely to take a direct hit once Broadcom takes over Qualcomm. He wrote that "the Trump edict essentially kills any chances of this deal happening and is a major gut punch to those Qualcomm bulls hoping this soap opera could end with a bid following pressure from the shareholder meeting, which is poised to happen next month after getting delayed". Mollenkopf and Paul Jacobs - a former CEO who had been executive chairman until last week, when Qualcomm downgraded his role - are both engineers who focused on the company's technological prowess to drive its growth. Jeffrey Henderson, an independent director of Qualcomm since 2016, was named non-executive chairman. Xcerra has customers among chipmakers that supply crucial components to the Defense Department, among other government agencies.

The most recent offer, made in February, was over $121 billion.

President Trump has blocked a record-breaking merger of two of the world's largest microchip makers on national security grounds. Lattice lobbied for approval of the transaction, saying it does not supply chips to the American military, unlike its competitors at Intel and Xilinx.

The US also recently blocked the $1.2bn sale of money transfer firm Moneygram to China's Ant Financial, the digital payments arm of Alibaba. MoneyGram is a money transfer company. 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.

While Trump's order bars Broadcom's nominees from remaining on the slate, Qualcomm can't ignore the signal investors sent when the voting was open to alternatives.

The administration moved with unusual speed in the matter that caught many involved in the negotiations off guard. Before waiting for an actual deal, CFIUS opened an investigation to review the risks to national security.

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