Qualcomm, Moving to Fend Off Broadcom, Raises Bid for NXP to $44 Billion
- 6 years ago
Qualcomm, Moving to Fend Off Broadcom, Raises Bid for NXP to $44 Billion
“The board unanimously believes this is an attractive acquisition at this price for Qualcomm stockholders.”
The revised bid was enough to win over investors controlling roughly 28 percent of NXP’s shares, including
Elliott Management, the activist hedge fund that had opposed Qualcomm’s initial offer as too low.
Under the new terms, Qualcomm would pay $127.50 for each NXP share, 16 percent more than originally proposed,
and the threshold for how many NXP shareholders must agree to tender their shares would be lowered to 70 percent from 80 percent.
Qualcomm on Tuesday increased its takeover bid for rival chip maker NXP Semiconductors to about $44 billion in hopes of shoring up support for the deal,
and to potentially fend off its own unwanted suitor, Broadcom.
Broadcom’s chief executive, Hock Tan, has said that his company would abandon the takeover if Qualcomm’s offer for NXP rose above $110 a share
“The board unanimously believes this is an attractive acquisition at this price for Qualcomm stockholders.”
The revised bid was enough to win over investors controlling roughly 28 percent of NXP’s shares, including
Elliott Management, the activist hedge fund that had opposed Qualcomm’s initial offer as too low.
Under the new terms, Qualcomm would pay $127.50 for each NXP share, 16 percent more than originally proposed,
and the threshold for how many NXP shareholders must agree to tender their shares would be lowered to 70 percent from 80 percent.
Qualcomm on Tuesday increased its takeover bid for rival chip maker NXP Semiconductors to about $44 billion in hopes of shoring up support for the deal,
and to potentially fend off its own unwanted suitor, Broadcom.
Broadcom’s chief executive, Hock Tan, has said that his company would abandon the takeover if Qualcomm’s offer for NXP rose above $110 a share