Qualcomm Raises Offer For NXP; Seeks 70 Percent of Shares at The Least

2 months ago admin Comments Off on Qualcomm Raises Offer For NXP; Seeks 70 Percent of Shares at The Least
U.S. chipmaker Qualcomm Inc raised its offer to buy NXP Semiconductors NV to $127.50 per share from $110, after being pressured by shareholders led by activist hedge fund Elliott Management Corp. Qualcomm said it needs to buy a minimum 70 percent of NXP’s outstanding shares in a tender offer, instead of the 80 percent it required under the earlier terms. The latest offer values NXP at $44 billion.

NXP’s shares were up 6.5 percent at $126.15 in premarket trading. The stock has traded above the original offer price for nearly seven months as investors expected a revised offer.

The buyout of NXP will help Qualcomm, which provides chips to Android smartphone makers and Apple Inc, to expand in the fast-growing market for chips used in automobiles and reduce its dependence on a cooling smartphone market.

Also read: Uber CEO Sees Commercialisation of Flying Taxis in 5-10 Years

San Diego-based Qualcomm agreed to buy Netherlands-based NXP for about $38 billion more than a year ago, but some NXP shareholders resisted a sale seeking a better price.

Elliott said in January that NXP was worth much more than its previous assessment of $135 per share.

Broadcom Ltd, which is seeking to buy Qualcomm for $121 billion, has said its offer was contingent on either Qualcomm buying NXP at $110 per share or the deal being terminated. Qualcomm had resisted increasing the offer price and last month boosted its buyback plan as an alternative to buying NXP.

“Our preference is to close NXP, but not at all costs,” Qualcomm Chief Financial Officer George Davis said on a post-earnings conference call in January. Qualcomm, Broadcom and NXP were not immediately available for comment.

Shares of Qualcomm and Broadcom were trading marginally below their Friday close.

Watch: Tech and Auto Show Ep 31 | Auto Expo 2018 Special | Unveilings & Launches

 

Also Watch
  • Auto Expo 2018: First Look of TVS Creon Concept at Auto ExpoAuto Expo 2018: First Look of TVS Creon Concept at Auto Expo
  • Jeep Compass First Drive ReviewJeep Compass First Drive Review
  • Cricket's Rendition of the 'Beautiful Game' - Leg CricketCricket’s Rendition of the ‘Beautiful Game’ – Leg Cricket
  • 5 Dishes That Make Amritsar The Food Capital Of Punjab5 Dishes That Make Amritsar The Food Capital Of Punjab
  • Broadcom Ltd
  • Elliott Management Corp
  • NXP Semiconductors
  • Qualcomm Acquisition

| Edited by: Sarthak Dogra

[afsp_imgs kwd=”technics” num=”1″ wd=”640″ hg=”360″]

[afsp_tube kwd=”technics” num=”1″ wd=”640″ hg=”360″]