Paul Singer’s activist hedge fund has called on Qualcomm to increase its “insufficient” offer for Dutch chipmaker NXP Semiconductors, a move that could indirectly help the US company fend off a separate US$130 billion hostile takeover bid by rival Broadcom.
Elliott Advisors, the UK arm of Mr Singer’s fund, said on Monday, December 11, that Qualcomm should raise its asking price to US$135 a share from US$110 per share, an offer that values NXP at about US$47 billion. Qualcomm, which is opposed to raising its NXP bid, may now consider increasing its offer as part of a defensive move to fend off Broadcom.
“We believe NXP’s prospects are bright,” Elliott said in a letter to NXP shareholders on Monday. “Approximately half of NXP’s revenue is exposed to exciting growth engines of the semiconductor market – automotive and industrial. We believe NXP shareholders have the opportunity to unlock a material valuation gap that exists today.”
Qualcomm responded in a statement, “Elliott’s value assertion for NXP is unsupportable and is clearly nothing more than an attempt to advance its own self-serving agenda, We remain fully committed to closing the acquisition of NXP and believe that the agreed-upon price of $110 is full and fair.”
Full Content: Financial Times
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