The goliath chip company Qualcomm has upped the ante on its bid for the semiconductor monolith NXP to nearly forty-four billion dollars this week. They are trying to gain the support of shareholders for this daring acquisition, which traders on Wall Street view as a good match, as well as a good bet for increased profits. Qualcomm is currently under attack in a hostile takeover bid by Broadcom Ltd, of Great Britain. Today a Broadcom spokesperson said that the company would not actively pursue acquisition if Qualcomm continues to offer the forty-four billion price. If Qualcomm stays firm with its commitment, it could be the end of NXP Semiconductor’s problems — at least for now.
The motive behind this offer, according to investment bankers, is to make nice with Elliott Management Corporation, as well as several other hedge fund companies that have disputed the Broadcom bid as too insubstantial to be considered seriously. It should be noted that Elliott Management Corp owns seven percent of of NXP Semiconductors already. NXP is poised to take over the leadership of chips for automobiles, both in Europe and in North America. Elliott claims that because of outstanding fourth quarter earnings, NXP stock is now worth over one-hundred-and-thirty-five dollars per share.
NXP has its headquarters in the Netherlands, but recently became listed on the New York Stock Exchange, where it was traded last at just over one-hundred-and-ten dollars per share. Stock market mavens say this a very strong indicator that NXP is poised for a huge rise in value during the rest of February.