Broadcom claimed that Qualcomm was not really interested in the buy out, although the fact that it reduced its offer might have had something to do with it. Price and the anti-trust issues are a major spanner in the works for the deal as far as Qualcomm is concerned.
“The latest statement issued by Broadcom is disingenuous and clearly intended to create a false impression about Qualcomm’s level of engagement. In fact, Qualcomm has repeatedly attempted to engage with Broadcom on issues including price, including at meetings on February 14 and February 23. In each of those meetings, Broadcom has refused to engage on price."
Qualcomm said that it had come up with a comprehensive proposal that addresses regulatory and other merger agreement issues in order to clear the way for a price discussion with Broadcom. However Broadcom needs to indicate that it will budge on price.
Qualcomm’s Board remains unanimous in its view that Broadcom’s current offer of $79 per share, as well as the previous offer of $82 per share, materially undervalues the company.
It also said that Broadcom's claims that Qualcomm was considering moving the date of its annual meeting are false. Qualcomm has no intention of delaying the annual meeting and "made that clear to Broadcom during our February 23 meeting”.
Meanwhile a national security panel that can stop mergers that could harm US security has begun looking at Broadcom's plan to take over rival Qualcomm.
CFIUS, an opaque inter-agency panel, has been in touch with at least one of the companies in the proposed merger, one source said, and met last month to discuss the potential merger of the two big semiconductor companies, according to two sources familiar with the matter.
Senator John Cornyn, the No. 2 Republican in the Senate, urged Treasury Secretary Steven Mnuchin on Monday to have the Committee on Foreign Investment in the United States, or CFIUS, officially review the proposed transaction before a key shareholder vote expected on March 6, according to a letter seen by Reuters.
