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US regulator postpones Qualcomm vote on Broadcom's board nominees

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US regulator postpones Qualcomm vote on Broadcom's board nominees

The U.S. Committee on Foreign Investment has asked Qualcomm Inc. to postpone its upcoming annual meeting by 30 days to assess whether Broadcom Ltd.'s takeover offer poses a national security threat, prompting an angry response from Broadcom.

Qualcomm's shareholders were due to vote on Broadcom's six nominees for independent directors at the March 6 meeting.

"It should be clear to everyone that this is part of an unprecedented effort by Qualcomm to disenfranchise its own stockholders," a statement from Broadcom said, adding that it would cooperate with the CFIUS in any review.

The company previously said it would withdraw its offer if its nominees were not elected to Qualcomm's board.

Singapore-based Broadcom is working to re-domicile in the U.S. and expects to receive all necessary approvals by May 6. Upon completion of the process, its proposed offer for Qualcomm will not be a CFIUS-covered transaction.

Moelis & Co. LLC, Citi, Deutsche Bank, J.P. Morgan, Bank of America Merrill Lynch, Morgan Stanley and Wells Fargo Securities are acting as financial advisers to Broadcom.

Wachtell Lipton Rosen & Katz, Latham & Watkins LLP, Simpson Thacher & Bartlett LLP and O'Melveny & Myers LLP are acting as legal counsel.