President Donald Trump ordered the Singapore-based company Broadcom to cease its attempts to buy the US company Qualcomm, for which it had launched a hostile takeover of 117 billion dollars .
“The proposed absorption of Qualcomm is prohibited, and any merger, acquisition or substantially similar absorption, whether direct or indirect, is also prohibited,” Trump said in a presidential order.
The US president argued that the operation, which could have been the largest in the technology sector, “threatened to harm US national security.”
In addition, the 15 potential candidates proposed by Broadcom before the Securities and Exchange Commission (SEC) are “disqualified” as possible members of the Qualcomm board, which is also prohibited from now accepting the nomination or votes of any of the candidates .
The operation would have put the largest US microchip manufacturing company for mobile phones in the hands of an Asian-based company.
Broadcom launched the hostile bid on Qualcomm in November last year at a price of $ 70 per share and in February raised the offer to $ 82.
Address Qualcomm rejected Broadcom offers and the Government of Trump ordered earlier this month at the California delay a meeting at which shareholders had been able to appoint new directors related to the operating company.
Qualcomm in free fall after the veto
Qualcomm continues to fall in the futures market , more than 5% , after collapsing on the eve 4% on the Nasdaq after US President Donald Trump decided to block the acquisition of US microprocessor manufacturer by rival Broadcom ,.
Broadcom issued a statement after hearing the White House’s decision stating that it “is reviewing the order” and underlining its “total disagreement” with the claim that the proposed transaction represents a problem for US national security.
Broadcom had planned to move its headquarters from Singapore to the US on April 3, one month before the date it had announced as part of the agreement to buy Qualcomm .