Qualcomm: shares drop after acquisition by Broadcom blocked

(CercleFinance.com) - Qualcomm shares have fallen as much as 4% in early trading on Tuesday after the company received a presidential order prohibiting its planned merger with rival Broadcom.


Yesterday Qualcomm received an order from President Trump to immediately and permanently abandon the takeover offer recently made by Broadcom.

Under the terms of this order, all of Broadcom's director nominees are also disqualified from standing for election as directors of Qualcomm, the company said.

Qualcomm shares are currently trading at 60.4 dollars, down 3.8%, while Broadcom shares are up 2.7%.

Broadcom said on Monday that it strongly disagreed that the proposed acquisition raises any "national security concerns".

Last November, Broadcom announced its intention to initiate a process to change the ultimate parent company to a US corporation, as its headquarters are currently based in Singapore.

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