Broadcom shares are up over 5% after-hours (and Qualcomm lower) after WSJ reports Intel is considering a range of acquisition alternatives in reaction to Broadcom's hostile pursuit for Qualcomm that could include a bid for Broadcom, according to people familiar with the matter.

Intel has reportedly been considering such a move since late last year and is working with advisers, some of the people said, and as The Wall Street Journal reports:

Intel is watching the takeover battle closely and is eager for Broadcom to fail as the combined company would pose a serious competitive threat, the people said.

If it looks like Broadcom is likely to prevail, Intel could step in with its offer for Broadcom, the people said.

In other words, Intel's interest is conditional on the Broadcom/Qualcomm deal's consummation. One wonders how long before Qualcomm makes an offer for Intel (given the insanity in IG corporate bond markets, levering up for any acquisition is rewarded in the new normal).

But the Broadcom/Qualcomm deal remains in limbo, as Hayman Capital's Kyle Bass explained earlier in the day....

Bass explained on CNBC why he doesn’t think the U.S. can allow Broadcom’s potential purchase of Qualcomm to go through because of QCOM’s importance to developing 5G technology: commented earlier in CNBC interview.

“We can’t possibly let the Broadcom Qualcomm merger go through. We can’t possibly allow that technology and that technological know how” to fall into hands of others.

The U.S. government is also worried about the issue. The Treasury Department wrote a letter Monday to lawyers involved in the deal expressing concern about Chinese competitors in 5G network development, which raises national security concerns over the Broadcom-Qualcomm merger.

Broadcom said in a letter to Congress regarding its offer to acquire Qualcomm that the company will not sell any "critical national security assets" to any foreign companies.

And just this evening the Committee on Foreign Investment (CFIUS) has asked Broadcom to submit a notice on redomiciling to the U.S., Reuters reports, citing sources.