Trump Issues Order Blocking Broadcom Takeover Of Qualcomm
President Trump late Monday issued an order stating that the proposed Broadcom (AVGO) takeover of Qualcomm (QCOM) is prohibited.
X The Committee on Foreign Investment in the United States had cited national-security concerns in recent days, even though Broadcom is moving to redomicile in the U.S. from Singapore. CIFUS reportedly has been concerned about Broadcom’s ties to Chinese firms, including telecom gear gaint Huawei.
The order nullifies Broadcom’s slate of directors to replace Qualcomm’s board. The order also blocked any deal similar to Broadcom-Qualcomm
Broadcom shares initially fell in late trading, then then reversed to rise fractionally. Broadcom stock has been under pressure due to concerns over the hefty price tag for Qualcomm. But Broadcom had rallied 3.6% in Monday’s regular session on a report that Intel (INTC) could bid for Broadcom if it appeared poised to acquire Qualcomm.
Intel has recently won some Apple (AAPL) iPhone chip contracts and was hoping to expand given Qualcomm’s royalty feud with Apple.
Qualcomm, which dipped during Monday’s session, fell 4.5% in late trading. Intel rallied 1.4% after losing 1.3% in the regular session.
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