Chipmaker Qualcomm has upped the ante in its pursuit of NXP Semiconductors, raising its offer to $127.50 per share.
In a statement on Tuesday, Qualcomm said it had the support of key NXP shareholders including a grouping led by hedge fund Elliott Management.
Shares in NXP were up by around 6% on Tuesday, while Qualcomm shares traded around 3% lower.
The 6% rise for NXP sees the stock trade at around $126 per share, just shy of Qualcomm´s latest offer price.
Qualcomm´s revised offer values NXP at $44bn, about 16% higher than its previous bid in October of $110 per share.
While October´s offer was agreed by the NXP board, it ran into opposition from the likes of Elliott.
Qualcomm hopes the increased offer for NXP will also effectively scupper the ongoing hostile bid that it has itself been facing from rival Broadcom.
While having already secured the agreement of both the NXP board and around 28% of the NXP shareholder base for the latest offer, the acceptance threshold for the bid has also been reduced to 70% of NXP’s investor base from 80% previously.
“Qualcomm’s leading SoC capabilities and technology roadmap, coupled with NXP’s differentiated position in Automotive, Security and IoT, offers a compelling value proposition. We remain highly confident in our fiscal 2019 Non-GAAP EPS target of $6.75-$7.50, which includes $1.50 per share accretion from the acquisition of NXP. With only one regulatory approval remaining, we are working hard to complete this transaction expeditiously. Our integration planning is on track and we expect to realize the full benefits of this transaction for our customers, employees and stockholders,” said Qualcomm board director Tom Horton in a statement on Tuesday.
Qualcomm said it would fund the increased offer with cash on hand and new debt issuance.