The Committee on Foreign Investment in the United States ordered Qualcomm Inc. to postpone annual stockholders meeting and election of directors by one month. The Department of the Treasury acknowledged the move on Monday and revealed it would "fully" investigate the so far hostile bid by Broadcom Ltd., which is incorporated in Singapore. CFIUS is responsible for initiatives from overseas for mergers involving domestic companies and can recommend for transactions to be blocked over security concerns.
Qualcomm denied it hid the demand to the regulatory panel from Broadcom during talks. The meeting, in which the latter was going to push for the appointment of a majority of directors, was scheduled for tomorrow. Broadcom earlier went public with the information and called it "a blatant, desperate act" aimed at preventing the target's stockholders to vote.
The initial talks between the two chipmakers have prompted concerns over implications in the development of 5G technology for wireless communications. Qualcomm, based in San Diego, extended today its cash tender offer for shareholders of NXP Semiconductors NV until March 9.
