Qualcomm takeover a national security risk, says US

07 March, 2018, 00:27 | Author: Kristen Mcgee
  • SPECIAL REPORT The inside story of Boko Haram’s first-ever visit to Dapchi

Qualcomm quickly responded with a statement accusing Broadcom of continuing a "now familiar pattern of deliberately seeking to mislead shareholders and the general public by using rhetoric rather than substance to trivialise and ignore serious regulatory and national security issues".

The inter-agency body, led by the Treasury, rarely looks at mergers before firms have clinched an agreement, highlighting the urgency of USA concerns about safeguarding semiconductor technology and casting doubt on the deal's success.

Qualcomm stated on 5 March that "Broadcom's claims that the CFIUS inquiry was a surprise to them has no basis in fact".

The US government is concerned that Chinese companies, including big network equipment and mobile-phone maker Huawei Technologies, will take advantage of any openings to take the lead in the next-generation mobile-phone networks known as 5G. The New York Times is reporting that the Committee on Foreign Investment in the United States, or CIFUS, notes that the risk is related to Broadcom's relationships with foreign entities.

The United States' Committee on Foreign Investment (CFIUS) took the unusual step Monday of ordering California-based chipmaker Qualcomm to delay a board meeting scheduled for Tuesday where Singapore company Broadcom Limited planned to seize control in a hostile takeover. Any loss of that competitiveness, the letter said, "would significantly impact USA national security".

Treasury also cited the Defense Department's reliance on products made by Qualcomm, which is based in San Diego.

Geneva 2018: New Mercedes-AMG C43 Debuts
There's a dual 12.3-inch digital instrument cluster and a large infotainment screen is stacked at the centre of the dashboard. With the excellent power output, the new GT 4-door Coupe puts itself among the best performance cars in the market.

A source familiar with CFIUS' thinking said that if the deal was completed, the USA military was concerned that within 10 years, "there would essentially be a dominant player in all of these technologies and that's essentially Huawei, and then the American carriers would have no choice".

"Qualcomm has become well-known to, and trusted by, the USA government", the Treasury Department wrote to lawyers involved in the deal on Monday.

In January, Chinese firm Ant Financial canceled its bid to acquire US money transfer company MoneyGram, after CFIUS rejected the deal, citing concerns over the safety of data that can be used to identify USA citizens. Ordinarily, it only weighs in after a deal is agreed upon - and can recommend that the president block any deal it considers a threat.

Qualcomm rejected a $105 billion offer from Broadcom in November.

"Qualcomm's work is too important to our national security to let it fall into the hands of a foreign company-and in a hostile takeover no less", Cotton said in a statement.



Storm warning in effect
Total snow accumulations of 2 to 4 inches, with localized amounts up to 5 inches, and ice accumulations of a glaze are expected. Lessor said parts of the the shoreline could avoid snow altogether and get more rain "depending on how close the storm gets".

Detectives investigating Leicester explosion continue to quiz men from East Anglia
Prosecutor Zoe Lee said: "A call was received by the police by a member of the public stating that an explosion was heard". The three were remanded in custody and will appear by video link at Leicester Crown Court for their pre-trial review.

Crowd Runs After Shot Fired Near White House
The Secret Service also tweeted that pedestrian and vehicular traffic around the White House has been affected by the incident. JOURNALISTS hid in the briefing room of the White House yesterday after a man shot himself in the head outside the gates.

Don't Want Trade War With US, But Will Take Necessary Measures: China
The US Embassy in Beijing didn't immediately respond to a request for comment about the status of trade talks. He garnered even more laughs when he quipped: "Maybe we'll have to give that a shot someday".

Baldwin's Trump Boasts On 'SNL' He's Running Country Like A Waffle House
Baldwin's Trump also joked about reports that he calls Attorney General Jeff Sessions "Mr. But maybe we do just take all the guns away ...

Markets Right Now: Late rally erases an early stock slide
The Fed's chairman, Jerome Powell, jolted markets on Tuesday, when he said that he's feeling more optimistic about the US economy. The two-year yield slipped to 2.23 percent from 2.26 percent, and the 30-year yield dropped to 3.11 percent from 3.13 percent.

Game 4: Michigan Wolverines outlast Iowa, 77-71, in overtime
Top shot: After missing two 3-pointers that would have tied the game, Iowa was forced to foul MI with less than a minute to go. After allowing 40 points in the first half, MI held Iowa to 27 points in the second half and four in the overtime session.

Situation 'Under Control' at French Missions in Burkina, Several Attackers Killed
An Australian doctor who had spent decades treating civilians was also abducted along this border and remains missing. Among his objectives has been ending the use of French, the former colonizer's language, in regional schools.

Cyberattack on Germany is 'like an assault on borders'
The government insisted the attack was being contained. "I fear that more will come to light in the coming weeks", he said. Media reports said it was detected in December but may have been under way for up to a year.

Syria: UN humanitarian chief Mark Lowcock lambasts security council on Ghouta ceasefire
The Syrian Red Crescent confirmed it managed to evacuate the family to Damascus , handing them over to the Pakistani embassy. A senior U.S. general on Tuesday accused Moscow of acting as "both arsonist and firefighter" by failing to rein in Assad.