As a major electronics company in mobile, and a driver of 5G, This deserves to be watched.
Shares of Qualcomm Inc. QCOM, +0.56% surged 4.4% in premarket trade Monday, after Broadcom Ltd. AVGO, -1.56% boosted its bid to buy the semiconductor maker by 17% to its "best and final offer" of $82 a share. The bid consists of $60 a share in cash and the rest in Broadcom stock. Reuters had reported on Sunday that an increased bid was planned.
Marketwatch
NewYorkTimes
“Given well-known U.S. national security concerns about Huawei and other Chinese telecommunications companies, a shift to Chinese dominance in 5G would have substantial negative national security consequences for the United States,” a CFIUS official wrote in a March 5 letter to the companies’ lawyers that was reviewed by The Wall Street Journal.
Broadcom appeared to be laying the groundwork to get ahead of potential national-security concerns even before it launched its initial bid for Qualcomm. In a televised appearance last November with President Donald Trump at the White House, Broadcom’s Mr. Tan announced plans to redomicile his Singapore-based company to the U.S., a move that could have rendered CFIUS review inapplicable. Mr. Trump lavished praise on Mr. Tan, calling him “a great, great executive” and saying Broadcom was “one of the really great, great companies.”
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Days later, Mr. Tan launched an unsolicited $105 billion bid for Qualcomm. Broadcom raised that to more than $120 billion at one point, then cut it back again to the current $117 billion offer after Qualcomm raised its separate bid for European giant NXP Semiconductors NV.
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