NXP bump could form part of Qualcomm defence against Broadcom – sources

30 November 2017 - 12:00 am UTC

Qualcomm [NASDAQ:QCOM] bumping its price for NXP Semiconductors [NASDAQ:NXPI] could form part of its defence against Broadcom’s [NASDAQ:AVGO] unsolicited approach, two sources close to and a person familiar with the situation said.

Without a price increase for NXP, Qualcomm will likely fail to achieve the shareholder acceptance threshold required and the deal will lapse. NXP is currently trading above the USD 110 per share offer price at USD 113.51.

By definition, a bump for NXP makes Qualcomm more expensive for Broadcom, the person familiar with the situation said. Acquiring the Dutch company significantly enhances Qualcomm’s value by taking it into growing markets such as automotives, the company has previously said.

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