U.S. Orders Qualcomm to Delay Board Meeting for Review of Broadcom Offer
By Stu Woo
The U.S. government ordered chip maker Qualcomm Inc. to delay its shareholder meeting this week to provide it more time to review rival Broadcom Ltd.'s proposed takeover of the chip maker.
The move represents a highly unusual intervention by Washington, and will delay Broadcom's proxy fight for control of Qualcomm's board. Qualcomm's board was set to vote on whether to replace six of its directors with nominees put forward by Broadcom.
Qualcomm, based in San Diego, has so far spurned Singapore-based Broadcom's $117 billion takeover offer, forcing Broadcom to go hostile in its pursuit.
In a statement early Monday, Broadcom said that Qualcomm requested a U.S. government review that will delay the Qualcomm shareholder vote. That vote was slated for Tuesday.
Broadcom said it learned of Qualcomm's request on Sunday night, and that Qualcomm had not disclosed its request in its interactions with Qualcomm.
The Committee on Foreign Investment in the U.S., known as CFIUS, will review the merger, Broadcom said. The secretive committee is headed by the Treasury Department and includes officials from the Justice, Defense, Homeland Security and Energy departments. It reviews foreign acquisitions of U.S. assets on national security grounds.
Write to Stu Woo at Stu.Woo@wsj.com
(END) Dow Jones Newswires
March 05, 2018 06:56 ET (11:56 GMT)Copyright (c) 2018 Dow Jones & Company, Inc.