President Trump signed an executive order prohibiting Broadcom from acquiring Qualcomm or proceeding with any substantially equivalent merger, acquisition, or takeover of the firm whether effected directly or indirectly.
The order cited “credible evidence” that Broadcom, along with its partners, subsidiaries, or affiliates, impairs the national security of the United States.
Trump said he was taking this action upon review of a recommendation from the Committee on Foreign Investment in the United States.
Broadcom issued a statement saying it was reviewing the order.
Qualcomm issued a statement saying all of Broadcom’s director nominees are also disqualified from standing for election as directors of Qualcomm. ‘the company will reconvene its 2018 Annual Meeting of Stockholders on the earliest possible date. Stockholders of record on January 8, 2018 will be entitled to vote at the meeting.
