Qualcomm Improves Bid To Purchase NXP – Broadcom May Do Same

Qualcomm is keen on acquiring NXP and it has been on the pursuit since 2016. In time past, the company made a $38 billion US bid at $110 per share. At the time, NXP was worth a little less than $100 per share but Elliott Management, which owns a 7.2% stake in NXP, considered Qualcomm’s offer too low and underestimated the value of NXP Semiconductors.

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Now, NXP Semiconductors shares have exceeded $110 thus Qualcomm has no choice but to raise its offer. Now, Qualcomm has announced an agreement to raise its bid to $127.50 per share. With the current values, the total deal will be up to the tune of $44 billion. Qualcomm said that NXP shareholders with 28% share have agreed to provide their holdings at the up-quoted price. This increased offer to buy NXP Semiconductors will definitely affect Broadcom’s pursuit of the company. Broadcom’s second offer of $82 per share and a total $121 billion was rejected and it now appears that Broadcom will have to part with more money if it will ever take over Qualcomm.

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