Qualcomm to Delay Shareholder Meeting 30 Days After CFIUS Order
Qualcomm postponed a key investor vote in the hostile takeover battle with Broadcom, after the powerful Committee on Foreign Investment in the U.S. started investigating the proposed combination and ordered a delay, according to Bloomberg.
The meeting will be pushed back for at least 30 days, Qualcomm said. That throws up a major roadblock for Broadcom’s $117 billion bid, since shareholders were scheduled to vote on six director nominees proposed by the Singapore-based company, potentially giving it a majority on Qualcomm’s board.
Broadcom slammed Qualcomm’s decision to “secretly” file a voluntary request with CFIUS to start an investigation, labeling it a “blatant, desperate act” to entrench its incumbent board of directors. Qualcomm shot back that Broadcom’s claims that the CFIUS inquiry was a surprise to them has “no basis in fact.” Broadcom has been interacting with CFIUS for weeks and made two written submissions, Qualcomm said.
Hock Tan, Broadcom’s chief executive officer, joined President Donald Trump in the White House last year to announce he was moving Broadcom’s headquarters to the U.S. from Singapore. Once Broadcom re-domiciles, currently planned for no later than May 6, the takeover would not be a CFIUS covered transaction, Broadcom said in the statement.