According to the Pentagon, a memo requesting a review of the Broadcom-CA deal is probably wrong



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(Reuters) – The US Department of Defense said Wednesday that a note purporting to show the Pentagon requesting a national security review of Broadcom chip maker Inc. (AVGO.O) $ 19 billion for the purchase of software company CA Technologies (CA.O) was probably wrong.

A sign indicating Broadcom Ltd chip manufacturer's offices on campus is being presented in Irvine, California, USA, on November 6, 2017. REUTERS / Mike Blake

Broadcom said in a statement that the two companies were American, "and that there is no factual or legal basis for the CFIUS to review our pending transaction."

The Pentagon is trying to find out who wrote the fake memo, according to a spokesman. She said that they felt it was likely to be a fake based on an initial assessment.

The Committee on Foreign Investment in the United States (CFIUS) is the government committee responsible for reviewing transactions relating to potential risks to national security. Panel members include representatives of several US agencies, including the Ministry of Defense and the Treasury Department.

The office of Senator Rand Paul, however, reiterated his call for a review of security by national security.

Paul's office said in a statement that the planned merger had "obvious implications for national security".

"Broadcom had national security issues in a CFIUS review just earlier this year and this review should be undertaken immediately," the statement said.

Earlier this year, US President Donald Trump blocked Broadcom's $ 117 billion hostile bid against its semiconductor counterpart Qualcomm Inc. (QCOM.O), arguing that it threatens the national security of the United States and gives an advantage to Chinese companies seeking to create new generation wireless networks.

Since then, Broadcom has moved from Singapore to the United States, officially placing it outside the jurisdiction of CFIUS.

Broadcom shares fell 2.9% to 237.61 dollars and shares of 2.3% to 43.01 dollars in the afternoon on the Nasdaq.

Broadcom announced the acquisition of CA Technologies in July.

Reportage of Munsif Vengattil and Sonam Rai at Bengaluru and Diane Bartz in Washington; Edited by Arun Koyyur, Susan Thomas and Jonathan Oatis

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