CFIUS Cites National Security Risks
in Qualcomm-Broadcom Deal
March 5, 2018
Qualcomm is delaying the business of its 2018 Annual Meeting of
Stockholders pursuant to an Interim Order received on March 4, 2018 from
the Committee on Foreign Investment in the United States (CFIUS).
The Treasury Department has outlined
concerns about Broadcom's proposed merger with Qualcomm, including
national security and a risk that Qualcomm could lose ground to China on
developing 5G wireless network technology.
"Qualcomm has become well-known to, and trusted by, the U.S.
government," the Treasury Department wrote to lawyers involved in the
deal on Monday. "Having a well-known and trusted company hold the
dominant role that Qualcomm does in the U.S. telecommunications
infrastructure provides significant confidence in the integrity of such
infrastructure as it relates to national security."
To implement this change, the 2018
Annual Meeting of Stockholders will be opened on March 6, 2018 at 8:00
a.m. Pacific Time and immediately adjourned to April 5, 2018. There will
be no voting or other matters conducted at the meeting.
The Annual Meeting will be reconvened on Thursday, April 5, 2018 at 8:00
a.m. Pacific Time at the Irwin M. Jacobs Qualcomm Hall, 5775 Morehouse
Drive, San Diego, California, 92121. The record date remains unchanged –
stockholders of record on January 8, 2018 will be entitled to vote at
the meeting. Stockholders who have previously cast their votes do not
need to vote again unless they want to change their vote.