Qualcomm meeting postponed for security review

SAN DIEGO — U.S. regulators ordered a delay in Qualcomm’s annual shareholder meeting, which was scheduled Tuesday, so they can review a proposed $117 billion hostile takeover bid by Broadcom for national security concerns.

The unusual move late Sunday by the interagency Committee for Foreign Investment in the U.S. comes as several lawmakers called for the review.

Qualcomm shareholders were set to vote on whether to hand control of the San Diego cellular technology company to Broadcom on Tuesday morning.

“The Committee on Foreign Investment in the United States (CFIUS) issued an interim order to Qualcomm directing it to postpone its annual stockholders meeting and election of directors by 30 days,” said the U.S. Treasury Department, which chairs CFIUS, in a statement. “This measure will afford CFIUS the ability to investigate fully Broadcom’s proposed acquisition of Qualcomm.”

Broadcom has nominated six alternative candidates to Qualcomm’s 11 member board of directors in a hostile takeover bid. The rival chipmaker accused Qualcomm of “secretly” seeking a voluntarily CFIUS review in January and failing to disclose the move to Broadcom during merger talks.

“This was a blatant, desperate act by Qualcomm to entrench its incumbent board of directors and prevent its own stockholders from voting for Broadcom’s independent director nominees,” Broadcom said in a statement.