Qualcomm Incorporated (NASDAQ: QCOM) 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 Broadcom’s 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.
Broadcom’s official statement after receiving the order was to strongly disagree that its proposed acquisition of Qualcomm raises any national security concerns.
“This should be viewed as a very positive event not only for Qualcomm but also for the market as a whole,” said Stuart Carlaw, Chief Research Officer at ABI Research. “The combined entity would have had dangerously dominant positions in some core markets such as location technologies, Wi-Fi, Bluetooth, RF hardware and automotive semiconductors. A diverse supplier ecosystem will be key to supporting the IoT as well as vertical market developments such as smart mobility and smart manufacturing.”
The Presidential Order is available at: https://www.whitehouse.gov/presidential-actions/presidential-order-regarding-proposed-takeover-qualcomm-incorporated-broadcom-limited/.