The Broadcom/Qualcomm soap opera continues to roll on. According to the Wall Street Journal this morning, Qualcomm is about to raise its bid for NXP Semiconductors NFV. The plan is to increase the current bid of $110 per share to $127.50 per share in an effort to win over NXP’s shareholders.
If they follow through this week, the proposed transaction will increase in vallue from the $39B up to $44B. Elliott Management Corp and other hedge funds had complained that the original price was too low, and the markets had been expecting a higher bid.
But the raised bid could have deeper implications, complicating Broadcom’s ongoing hostile bid for Qualcomm itself. Broadcom’s current offer, which it recently raised to $120B, stands for the case where Qualcomm’s original bid for NXP stands or is withdrawn.
Of course, Qualcomm’s board has already rejected that offer, and Broadcom is trying to install a slate of directors of its own choosing to Qualcomm’s board.
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Categories: Mergers and Acquisitions · Wireless
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