Report: US Treasury chides Broadcom for failure to notify of HQ move


Broadcom's attempt to take control of Qualcomm is a tech business story that will seemingly never stop giving. In this latest episode, Reuters reports that the Singapore-based silicon design firm disobeyed orders from the US Treasury Department when it started a plan to move its headquarters from Singapore to California without giving sufficient notice to the Committee on Foreign Investment in the United States (CFIUS).

According to Reuters, CFIUS member Aimen Mir wrote in a letter on Sunday, addressing both companies, that Broadcom "took a series of actions in violation" of a March 5 Treasury Department order. Namely, Broadcom was supposed to inform the CFIUS five business days before making any moves to bring its headquarters back to its original home in the US. Mir went on to recount three actions taken by Broadcom in violation of the Treasury Department's order. Reuters reports that Broadcom denied the accusations, and that both Qualcomm and the Treasury Department provided no comment.

Broadcom says its redomiciliation from Singapore to California will be complete by April 3, just two days before Qualcomm shareholders vote on acceptance of the takeover bid.

The Wall Street Journal reports separately that silicon juggernaut Intel may be considering defensive maneuvers against the perceived threat of Broadcom's hostile takeover of Qualcomm, up to and including acquiring Broadcom for itself. The WSJ goes on to say that Intel has been considering a Broadcom buyout since last year, but that the purchase of one or more of Broadcom's smaller competitors seems more likely.

The US government typically weighs in on mergers and acquisitions after a deal is reached. CFIUS' interest in Broadcom's takeover attempt before there's an agreement in place even if the companies can come to terms suggests that the story will hardly end there.

Tip: You can use the A/Z keys to walk threads.
View options