Sina News on October 12, Beijing time, people familiar with the matter disclosed that the U.S. authorities have begun to investigate whether the shares of Broadcom and CA Technologies have become targets of market manipulation plans.
The reason is related to Broadcom's announcement on Wednesday. Botong said a so-called Defense Department memorandum circulated among members of Congress raised national security concerns about Botong's planned acquisition of CA. Broadcom quoted the Ministry of defense as saying that the memorandum was forged.
The Justice Department and the Securities and Exchange Commission are investigating whether the memo may have been intended to manipulate share prices, people familiar with the matter said. The shares of Broadcom and CA fell on Wednesday because the merger of the two companies was closely scrutiny. Senator Rand Paul has called on a national security team to investigate the $19 billion deal by semiconductor company Broadcom for software company CA. The two companies have said the deal will be completed by the end of the year.
According to a person familiar with the situation, Broadcom contacted the authorities about the memorandum and was informed that the investigation had begun.
They said the Justice Department's investigation was conducted in the Southern District of New York, which has jurisdiction over Wall Street and often takes the lead in stock manipulation and other securities fraud cases.
Representatives of the Ministry of justice and the securities and Exchange Commission declined to comment.
