Trump issues order to block Broadcom takeover of Qualcomm

|About: Broadcom Limited (AVGO)|By:, SA News Editor

President Trump has issued an order to block Broadcom's (NASDAQ:AVGO) hostile takeover of Qualcomm (NASDAQ:QCOM).

Shares of Broadcom are flat after hours; QCOM is down 1% in postmarket trade.

It's a permanent block -- any merger or takeover attempt "substantially equivalent" to the proposed deal is also prohibited, according to the order, which CFIUS issued and the president signed.

"There is credible evidence that leads me to believe that Broadcom ... through exercising control of Qualcomm ... might take action that threatens to impair the national security of the United States," the order reads.

In addition to blocking any equivalent merger attempt, it says "all 15 individuals listed as potential candidates on the Form of Blue Proxy Card filed by Broadcom ... are hereby disqualified from standing for election as directors of Qualcomm. Qualcomm is prohibited from accepting the nomination of or votes for any of the Candidates."

Updated 6:44 p.m.: QCOM is down 3.7% after hours; AVGO down 3%. NXP Semiconductors (NASDAQ:NXPI) is flat.

Updated 6:50 p.m.: Intel (NASDAQ:INTC), which reportedly considered a defensive bid for Broadcom as the Broadcom-Qualcomm deal was bad for its business, is up 1.2% after hours.

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