Elliott Advisors (UK), which holds an approximate 7.2% economic interest in NXP Semiconductors, is insisting that the take-out value for Qualcomm to acquire NXP should be higher than $135 per NXP share.
Elliot published a presentation in which it argues:
- NXP is currently one of the most attractive companies in the semiconductor sector
- NXP has a track record of consistent outperformance versus market expectations over the past year
- NXP top-line growth came in above consensus expectations in each of the past four quarters with growth in 2017 Q4 of 16.0% outpacing consensus by 5.8 percentage points;
- NXP’s performance has been driven by impressive results of “Core NXP” (i.e., the Automotive and Secure Connected Devices segments contributing approximately 69%2 of NXP total revenues)
- In 2017 H2, NXP’s revenue growth was higher than the median growth for its peers, signaling NXP’s potential and giving credibility to consensus expectation that the company should grow faster than peers at 5.3% CAGR (1.5 percentage points ahead of the median for NXP’s peers);
- NXP is uniquely placed to radically enhance Qualcomm’s long-term strategy
http://www.fairvaluefornxp.com/
Broadcom sweetens its bid for Qualcomm
Broadcom boosted its unsolicited bid to acquire Qualcomm to $121 billion, or $82 per share, consisting of $60.00 in cash and the remainder in Broadcom shares. Broadcom described the bid as its “best and final offer”, saying that it is prepared to pay to Qualcomm “a significant “reverse termination fee” in an amount appropriate for a transaction of this size in the unlikely event we are unable to obtain required regulatory approvals.” Several conditions…
Elliott comments on Qualcomm’s extended tender for NXP
Elliott Advisors (UK) published an advisory letter to investment funds that now collectively hold an increased economic interest in NXP Semiconductors N.V. of approximately 6.6%. The advisory argues that that NXP is of significant strategic importance to QUALCOMM Incorporated (“Qualcomm”) and that such a transaction will deliver substantial value to Qualcomm shareholders at prices meaningfully higher than Elliott’s own assessment of standalone intrinsic…
Acquisition still not done – Qualcomm extends cash tender offer for NXP shares
Qualcomm extended the offering period of its previously announced cash tender offer to purchase all of the outstanding common shares of NXP Semiconductors N.V. (NASDAQ: NXPI). The tender offer is now scheduled to expire at 5:00 p.m., New York City time, on February 9, 2018, unless extended or earlier terminated, in either case pursuant to the terms of the Purchase Agreement. American Stock Transfer & Trust Company, the depositary for the tender…
Elliott Advisors says Qualcomm’s bid for NXP is too low
Elliott Advisors (UK), which advises funds that collectively hold an economic interest in NXP Semiconductors of approximately 6%, published an open letter stating that Qualcomm’s offer to acquire the company is too low. Elliot believes NXP is worth $135 per share on an intrinsic standalone basis – far above the $110 offered by Qualcomm. Elliott states Qualcomm’s offer of $110 per share is acting as “a ceiling on NXP’s valuation”, noting that NXP’s…
