Sun, Mar 11, 2018 - Page 16 News List

Intel casts doubt on report of interest in Broadcom

Reuters

Intel Corp responded to a report that it is considering a possible bid for Broadcom Ltd by saying that it is focused on integrating previous acquisitions.

The Wall Street Journal on Friday reported that Intel was considering such a bid as one of several options in response to Broadcom’s hostile bid for Qualcomm Inc.

Intel, the world’s second-largest semiconductor maker, is keeping a close eye on the US$117 billion takeover battle and is eager for Broadcom to fail, because the combined company would pose a competitive threat, the Wall Street Journal said.

If Broadcom seems set to prevail, Intel could step in with its own offer, the newspaper said.

Intel has been considering such a move since late last year and is working with advisers, it added.

While Intel is not ruling out an eventual approach to Broadcom, there are no takeover discussions under way, and that outcome is not the most likely one, said a person with knowledge of the matter contacted by Bloomberg, who asked not to be identified discussing private deliberations.

Responding to a request for comment on the report, Intel said that it does not comment on “rumors or speculation” related to mergers and acquisitions, but added that it was focused on ensuring its previous acquisitions are successful.

“We have made important acquisitions over the past 30 months — including Mobileye and Altera [Corp] — and our focus is on integrating those acquisitions and making them successful for our customers and shareholders,” Intel said in a statement.

Broadcom has a market value of about US$104 billion.

Its offer for Qualcomm has been met with resistance, not only from Qualcomm executives, but also from the US government, which has initiated a review on national security concerns.

This week, the US Department of the Treasury ordered a 30-day postponement to Qualcomm’s shareholder meeting, which was supposed to hold a vote on a slate of Broadcom board nominees.

While a new vote has been scheduled for April 5, a review by the Committee on Foreign Investment in the US (CFIUS) is expected to take longer.

Broadcom is pressing ahead, vowing to cooperate with the US review and pledging to boost investment in US wireless technology to offset concerns that it would slash spending and allow foreign companies to steal the lead in the next generation of mobile technology.

Meanwhile, CFIUS has ordered Singapore-based Broadcom to provide it with five business days’ notice before taking any action toward moving to the US, three people familiar with the matter told reporters on Friday.

The previously undisclosed requirement shows that the CFIUS is aware that its jurisdiction could be contested if Broadcom moves back to the US.

Broadcom on Friday said it expected to complete its move to the US by May 6.

It said it had petitioned a Singaporean court on Friday to order the convening of a special shareholder meeting to approve the move.

That meeting is to be held on March 23, the company said.

The court would then have to approve the move.

Additional reporting by Bloomberg

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