After its hostile takeover bid was blocked by a rare move of the United States government, Broadcom Ltd. said on Wednesday that it still intends to move the official seat to Delaware and hold a special stockholder meeting on March 23. The cash and stock offer of $117 billion for rival Qualcomm Inc. has been withdrawn, the chipmaker announced and added the management is "disappointed with this outcome."
The decision means the company led by chief executive Hock Tan, incorporated in Singapore, won't nominate directors in the target entity, headquartered in San Diego. Broadcom thanked US Secretary of the Treasury Steve Mnuchin for acknowledging its "thousands of hard-working and highly skilled" employees in the country. President Donald Trump has issued an order this week to forbid the transaction, as recommended by the Committee on Foreign Investment in the US.
Avago Technologies Ltd. has taken over California-based Broadcom Corp. two years ago for an equivalent of $37 billion and changed its own name.
