The Committee on Foreign Investment in the United States (CFIUS) doesn't typically review mergers before the companies have come to terms, but CFIUS has asked Qualcomm to postpone its shareholder meeting. that had been scheduled for Tuesday, by 30 days. In compliance with the CFIUS order, Qualcomm announced that it will delay its Annual Meeting of Stockholders and election of directors for at least 30 days so that CFIUS can fully investigate Broadcom Limited’s proposal to acquire Qualcomm.
This is an unusual move by Washington that will obviously will delay Broadcom’s proxy fight for control of Qualcomm’s board. Qualcomm’s shareholders were set to vote on whether to replace six of its 11 directors with nominees put forward by Broadcom. CFIUS will now review the merger as a foreign acquisitions of U.S. assets on national-security grounds.