Qualcomm Says Received Presidential Order Prohibiting Broadcom's Buyout Offer

(RTTNews) - Qualcomm Inc. (QCOM) said that it received a Presidential Order to immediately and permanently abandon the proposed takeover of Qualcomm by Broadcom Limited (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.

Earlier today, The U.S. President Donald Trump issued an executive order blocking Broadcom from pursuing its hostile takeover of Qualcomm Inc., scuttling a $117 billion deal that had been scrutinized by a secretive panel over its threat to U.S. national security. Separately, Broadcom said it was reviewing the order, and that it strongly disagreed that its proposed acquisition of Qualcomm raised any national security concerns.

Trump acted on a recommendation by the Committee on Foreign Investment in the U.S., which reviews acquisitions of American firms by foreign investors.

"There is credible evidence that leads me to believe that Broadcom Ltd.," by acquiring Qualcomm, "might take action that threatens to impair the national security of the United States," Trump said in the order released Monday in Washington.