At TR Daily’s news deadline, the White House announced that at the recommendation of the Committee on Foreign Investment in the United States (CFIUS), President Trump has issued an order prohibiting Broadcom Ltd.’s planned acquisition of Qualcomm, Inc., and directing the two companies to “immediately and permanently abandon the proposed takeover.”
In an order issued under the Defense Production Act of 1950, President Trump said that there was “credible evidence” to believe that Singapore-based Broadcom and its partners, subsidiaries, or affiliates in exercising control of Qualcomm “might take action that threatens to impair the national security of the United States.”
The president added, “All 15 individuals listed as potential candidates on the Form of Blue Proxy Card filed by Broadcom and Broadcom Corporation with the Securities and Exchange Commission on February 20, 2018 (together, the Candidates), are hereby disqualified from standing for election as directors of Qualcomm. Qualcomm is prohibited from accepting the nomination of or votes for any of the Candidates.”
The order also directs Qualcomm to “hold its annual stockholder meeting no later than 10 days following the written notice of the meeting provided to stockholders under Delaware General Corporation Law, Title 8, Chapter 1, Subchapter VII, section 222(b), and that notice shall be provided as soon as possible.”
Broadcom had announced plans earlier today to move up the target date for redomiciling to the U.S. (see separate story). —Lynn Stanton, email@example.com
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