Broadcom Says Defense Department Memo on Risk Is Fraudulent

Oct 10 2018, 4:23 PMOct 10 2018, 5:46 PMOctober 10 2018, 4:23 PMOctober 10 2018, 5:46 PM

(Bloomberg) -- Broadcom Inc. said a memo purported to be signed by the U.S. Department of Defense circulating among senators and members of Congress regarding the possible need for review of the company’s acquisition of CA Technologies is fraudulent.

“We have been informed by DoD officials that this memo is in fact a forged document,” Broadcom said Wednesday in a statement.

Broadcom pared losses after the announcement, and was trading down 1.9 percent to $240.16 at 12:31 p.m. in New York following an earlier drop of more than 4 percent.

Broadcom, which moved its headquarters from Singapore to the U.S., said the two companies are American, and there is no basis for a review of the pending transaction by the Committee on Foreign Investment in the U.S.

“We have received HSR clearance and the approval of CA shareholders, and we have a clear path to completing the transaction in the fourth calendar quarter of 2018,” Broadcom said.

Senator Rand Paul earlier Wednesday said the proposed transaction should be subjected to a national security review.