Qualcomm's shareholder meeting, originally scheduled for March 3th, has been postponed to April 6th due to the recent intervention of the Committee on Foreign Investment in the United States (CFIUS). Market sentiment suggests that if past overseas mergers and acquisitions involving U.S. national security are similar, CFIUS may require additional time for confirmation beyond the initial investigation. Therefore, if the acquiring company cannot dispel CFIUS's concerns within approximately 4 days, it will be almost impossible for the acquisition to be approved.
Furthermore, the market generally believes that Broadcom has deep cooperative relationships with Chinese companies such as Lenovo and Huawei. Therefore, it is believed that the US government will definitely consider that if Broadcom invests in Qualcomm and becomes the world's largest wireless communication technology supplier, it will cause the United States to fail in the development of 5G network technology and even endanger national security in wireless communication application projects. Even though Broadcom emphasizes that it is a purely American company, it also plans to complete the acquisition before May this year.Move headquarters back to the United StatesHowever, the acquisition may still attract the attention of the US government.
Prior to this, Qualcomm's senior management and board of directors had strongly urged shareholders to reject Broadcom's acquisition because the acquisition would inevitably attract the attention of regulators around the world, resulting in the transaction being unable to be completed and affecting Qualcomm's market value.
Judging from the current internal voting, most of Qualcomm's shareholdersWill support Broadcom's nominees for the board of directorsOn the contrary, the original board of directors composed of Qualcomm CEO Steve Mollenkopf and Qualcomm Chairman Paul Jacobs did not receive much support. In fact, Steve Mollenkopf only received the second-to-last number of votes among the current director nominees. Therefore, if a shareholder vote is actually held, the board of directors arranged by Broadcom may win a majority of seats, thereby promoting support for the acquisition proposal from within Qualcomm. This is also the development trend that Qualcomm is currently trying hard to prevent from happening.
