After getting delayed by at least a month or so following a regulatory investigation just days before the meeting was scheduled to take place, Qualcomms timetable to hold the meeting is now bumped up to ten days from now — and possibly before Broadcom may complete its move to the U.S. The new change is coming as part of a presidential order by the Trump administration to block a takeover attempt by Broadcom, which is looking to acquire the company in a hostile maneuver worth over $100 billion — making it the largest tech deal of all time. Qualcomm planned to hold the meeting last week, but had to push it back pending an investigation by the Committee on Foreign Investment in the United States (or CFIUS). Qualcomm also said in a statement that the order disqualified the nominees from Broadcom for the shareholder meeting, which would have given it the capacity to acquire Qualcomm in a hostile takeover. Broadcom said it planned to move its headquarters to the U.S., and Bloomberg reported that the company said it would have completed its move by April 3 — again, days before the shareholder meeting was to originally take place. The sum of all these moves — strategic or otherwise — is that, for now, it looks like Qualcomm isnt going to even give Broadcom a shot at getting the directors on board that could help it complete its hostile takeover. Its also a setback for Broadcom CEO Hock Tan, known as an aggressive dealmaker thats looking to lock up the industry in the face of companies like Intel looking to make their moves into the 5G space. Qualcomm Incorporated (NASDAQ: QCOM) today received a Presidential Order to immediately and permanently abandon the proposed takeover of Qualcomm by Broadcom Limited (NASDAQ: AVGO). Under the terms of the Presidential Order, all of Broadcoms director nominees are also disqualified from standing for election as directors of Qualcomm. Qualcomm was also ordered to reconvene its 2018 Annual Meeting of Stockholders on the earliest possible date, which based on the required 10-day notice period, is March 23, 2018. Stockholders of record on January 8, 2018 will be entitled to vote at the meeting. In short, the drama continues. See also: A brief history of the epic battle over the fate of Qualcomm.
President Donald Trump issued an order Monday evening blocking any merger of the chipmaking giants Broadcom and Qualcomm, saying it was necessary to protect national security. There is credible evidence, the order says, that if the Singapore-based Broadcom took control of the US-based Qualcomm that the company might take action that threatens to impair the national security of the United States. Broadcom has been trying to purchase Qualcomm for the last several months, but has continually been rebuffed. Its since tried to stack Qualcomms board with friendly members. Trumps order says that Broadcom will not be allowed to purchase or merge with Qualcomm in any way, and that all of the people Broadcom has proposed to Qualcomms board are disqualified. It seems that Broadcom was aware that Trump or his Justice Department might attempt to block the merger on these grounds and has been trying to avoid it. Trump has blocked similar takeovers before, having stopped a Chinese state-owned company from buying an American semiconductor firm back in September. Broadcom is currently in the process of moving its headquarters from Singapore to the US, according to Bloomberg, and planned to complete the transition by April 3rd. With the move, Broadcom seems ready to fight Trumps order. In a statement, the company said US national security concerns are not a risk to closing, as Broadcom never plans to acquire Qualcomm before it completes redomiciliation. Its not clear whether thatll be allowed to happen. Trumps order says that the two companies should permanently abandon the proposed takeover, indicating that Broadcoms move wont make a difference, unless its willing to take the order to court.