Activist investor Elliott Management disclosed a 6 per cent stake in NXP Semiconductors and said the chip maker’s shares were “significantly undervalued”, indicating it wants Qualcomm to pay more to acquire it than the planned $38 billion.
Elliott’s stake is valued at between $2.2 billion to $2.3 billion. It is NXP’s largest shareholder and, in a filing, said it may make proposals related to the company’s business, including the Qualcomm deal.
At least 70 per cent to 80 per cent of NXP shareholders must agree to tender their shares for the deal with Qualcomm to go through, Reuters reported.
In June, European authorities suspended an investigation into the planned acquisition, causing further delays for a deal which already looks troubled because the companies had not provided necessary input into an investigation initiated by the European Commission (EC).
It had previously been claimed Qualcomm was looking to get the green-light for the deal without making any concessions. However, with the EC expressing concern the deal could “lead to higher prices, less choice and reduced innovation in the semiconductor industry”, this may have been a tough ask.
The tender offer deadline was pushed out for several months while the companies await regulatory approvals, and they expect the deal to close by the end of the year.
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