Broadcom bid for Qualcomm: The saga so far

(Reuters) - Broadcom Ltd AVGO.O sought again to soothe U.S. security concerns around its bid for chipmaker Qualcomm Inc QCOM.O on Wednesday, saying it would stick with investments aimed at maintaining the United States' leadership in 5G technology.

FILE PHOTO: A sign to the campus offices of chip maker Broadcom Ltd, who announced on Monday an unsolicited bid to buy peer Qualcomm Inc for $103 billion, is shown in Irvine, California, U.S., November 6, 2017. REUTERS/Mike Blake/File Photo

The Committee on Foreign Investment in the United States (CFIUS), a national security panel that can stop mergers that could harm U.S. security, in an unusual move, stepped into Singapore-based Broadcom’s hostile takeover bid for Qualcomm this week, citing a number of concerns on the development of the next generation of mobile networks and technology.

CFIUS delayed a shareholder meeting that had threatened to hand Broadcom control of the Qualcomm board and, among other things, said lower R&D spending would weaken U.S.-based Qualcomm against Chinese companies.

Here are the important events that have taken place since Broadcom made its first bid to buy Qualcomm:

March 6, 2018

CFIUS identified potential risks that warrant a full investigation of Broadcom’s $117 billion bid for Qualcomm, a senior U.S. Treasury official said in a letter to the companies.

Some of the U.S. government’s concerns relate to risks associated with Broadcom’s relationships with foreign entities, Aimen Mir, the Treasury’s deputy assistant secretary for investment security, said in the letter, without identifying who those parties might be.

The letter, dated March 5, was made public by Qualcomm on Tuesday.

Separately, the Wall Street Journal reported that Qualcomm is in talks to settle a patent dispute with China's Huawei Technologies Co HWT.UL and could reach an agreement in the coming weeks, citing people familiar with the matter.

March 5, 2018

Broadcom said the decision by CFIUS to review the deal was the result of secret moves made by Qualcomm on Jan. 29 to encourage an investigation into the offer.

Qualcomm said in a statement that it was delaying its 2018 annual meeting to April 5 as a result of the CFIUS order.

Separately, Qualcomm, which is awaiting China's MOFCOM approval for the $44 billion deal to buy NXP Semiconductors NV NXPI.O, extended the tender offer to March 9 from March 5.

March 4, 2018

The U.S. government ordered the national security review of Broadcom Ltd’s $117 billion bid for Qualcomm that prompted Qualcomm to delay its March 6 shareholder meeting.

March 2, 2018

Broadcom, seeking to buy rival Qualcomm, was planning to complete its move back to the United States by mid-May, Reuters reported, citing sources familiar with the matter.

Wrapping up the move from Singapore and redomiciling in the United States relatively quickly could remove a roadblock to Broadcom’s proposed deal by calming concerns at the national security panel, CFIUS.

Feb. 27, 2018

CFIUS began looking at Singapore-based chipmaker Broadcom’s plan to take over rival Qualcomm, Reuters reported, citing three sources familiar with the matter.

Feb. 26, 2018

Qualcomm appears to warm to Broadcom’s advances by saying the sides have grown closer on regulatory issues and called for talks on price after Broadcom’s latest $117 billion offer. The war of words continued, however, as Broadcom called its U.S. semiconductor peer’s proposal to negotiate a higher price “engagement theater”.

Feb. 21, 2018

Broadcom cut its bid for Qualcomm by $3 to $79 per share after Qualcomm raises its offer for NXP Semiconductors.

Feb. 20, 2018

Qualcomm deals a blow to Broadcom’s raised bid by increasing its offer for NXP Semiconductors to $127.50 per share in cash from $110.

Feb. 14, 2018

Representatives of Broadcom and Qualcomm meet for the first time to discuss a potential combination; Qualcomm later calls the meeting “constructive”.

Feb. 13, 2018

Broadcom scales back its challenge to Qualcomm’s board by cutting the number of board seats it was trying to win to six from 11, following a meeting with proxy advisory firm ISS.

Feb. 8, 2018

Qualcomm rejects Broadcom’s revised buyout offer of $121 bln, but proposes meeting to address the bid’s “serious deficiencies in value and certainty”.

Feb. 5, 2018

Broadcom raises its offer for Qualcomm to $82 per share from $70 per share, calling the bid its “best and final offer”.

The revised offer is contingent on either Qualcomm acquiring NXP Semiconductors for $38 billion or the NXP deal being terminated.

Jan. 17, 2018

The Federal Trade Commission investigates whether Broadcom engaged in anticompetitive tactics in negotiations with customers, casting further doubts on regulatory approval for potential deals.

Dec. 22, 2017

Qualcomm rejects Broadcom and private-equity firm Silver Lake Partners’ 11 director nominees, setting the stage for a proxy battle.

Dec. 4 , 2017

Broadcom makes its first formal move toward a hostile bid to take over Qualcomm by nominating 11 directors to its rival’s board.

Nov. 13, 2017

Qualcomm rejects Broadcom’s $103 billion takeover bid, saying the offer undervalued the company and would face regulatory hurdles.

Nov. 6, 2017

Broadcom makes unsolicited $103 billion, or $70 per share, bid to acquire Qualcomm.

Compiled by Shravanth Vijayakumar and Shashwat Awasthi in Bengaluru; Editing by Bernard Orr