Qualcomm raises offer for NXP, putting Broadcom in a dilemma

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NXP Semiconductors NV had 64 analyst reports since August 3, 2015 according to SRatingsIntel. (NASDAQ:FB). State Common Retirement Fund owns 6.86M shares. Marco Investment Management Llc sold 8,300 shares as Nxp Semiconductors N V (NXPI)'s stock rose 5.22%. Vaughan Nelson Investment Management Lp bought 321,825 shares as the company's stock declined 3.15% while stock markets rallied. The company was maintained on Monday, July 10 by Jefferies. Numen Capital LLP now owns 134,000 shares of the semiconductor provider's stock valued at $12,824,000 after acquiring an additional 102,000 shares in the last quarter. The New York-based Cohen & Steers Inc has invested 2.72% in the stock.

Analysts await Applied Materials, Inc. Finally, Meiji Yasuda Asset Management Co Ltd. boosted its holdings in NXP Semiconductors by 9.4% in the third quarter. Institutional investors own 82.44% of the company's stock.

Several other equities research analysts also recently commented on NXPI.

NXP Semiconductors NV (NASDAQ:NXPI) received a Buy rating from 0 analysts. Jefferies Group set a $115.00 price objective on shares of NXP Semiconductors and gave the stock a "hold" rating in a research note on Thursday, October 26th. Specifically, Broadcom says it's offer of $120 billion for Qualcomm "is premised on either Qualcomm acquiring NXP Semiconductors...on the now disclosed terms of $110 per NXP share or the transaction being terminated..."

According to Reuters, Qualcomm has increased its offer to NXP shareholders from $110 per share to $127.50 following pressure from NXP shareholders who claimed that Qualcomm's bid undervalued the company. Mizuho maintained it with "Hold" rating and $11000 target in Wednesday, May 31 report.

The 6% rise for NXP sees the stock trade at around $126 per share, just shy of Qualcomm´s latest offer price. The new deal, which was agreed upon by the boards of directors of both companies, also reduces the minimum tender offer condition to 70 percent of NXP shares from 80 percent, lowering the bar for shareholder approval that would cement the deal. The company has market cap of $836.85 million. The company has a debt-to-equity ratio of 0.42, a current ratio of 2.22 and a quick ratio of 1.77.

NXP Semiconductors NV (NASDAQ:NXPI) gross margin percentage stands at 49.9% while its operating margin for the past trailing twelve month is 22.3 percent and its overall profit margin (ttm) is 23.9 Percent. It was reported on Feb, 20 by Barchart.com.

Tieton Capital Management Llc increased its stake in Tessco Technologies (TESS) by 15.46% based on its latest 2017Q3 regulatory filing with the SEC. Earlier today, the Wall Street Journal said that Qualcomm would be receiving a higher bid as soon as Tuesday, although that has yet to occur.

"The combination of the two companies could generate strong synergies and create a dominant wireless business and overall powerful global semiconductor leader", said Mike Walkley, an analyst at Canaccord Genuity told Bloomberg, which broke the story. The firm also provides secure identification solutions comprising passive RF connectivity devices; microcontroller devices; and secure real-time operating system software products to facilitate the encryption-decryption of data, and the interaction with the reader infrastructure systems. The Company's segments are High Performance Mixed Signal (HPMS), Standard Products (SP), and Corporate and Other.

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