President Donald Trump issued an order March 12 barring Broadcom Ltd. from further pursuit of San Diego's Qualcomm, for which the Singapore-based firm had launched a hostile takeover bid.
The decision comes the day after the U.S. Department of Treasury's Committee on Foreign Investment in the United States (CFIUS) said the Singapore-based Broadcom violated its March 4 order to put any move toward such a transaction on hold while it investigated the deal for potential national security ramifications.
The committee said Broadcom had continued taking steps toward moving its headquarters from Singapore to San Jose, a relocation Broadcom announced in November at the White House in an audience with Trump, without proper notification to CFIUS.
In a March 11 letter, CFIUS said its investigation had confirmed Qualcomm's acquisition by Broadcom would harm national security, and that without additional information that would cause it to reassess that conclusion it would consider asking the president to have final say on the transaction.
Trump's order said the decision was made at the recommendation of CFIUS.
The order also disqualified Broadcom's director nominees, and ordered Qualcomm to hold its shareholder meeting on the earliest possible date, March 23.