Qualcomm (QCOM +1.82%) has updated its tender offer for all shares of NXP Semiconductors (NXPI +1.76%) again. The number of shares committed to Qualcomm's $110 all-cash offer per NXP share saw a slight recovery in October after several months of steady declines. What's new in the November report?
Let's have a look.
By the numbers
When NXP shareholders commit their stubs to Qualcomm's offer, the shares may be withdrawn at any time. That was been a popular option this summer, but Qualcomm is finally reporting an uptick in the tendered share counts:
|
Offer Update |
NXP Shares Tendered |
Percent of Shares Tendered |
|---|---|---|
|
November |
8.1 million |
2.4% |
|
October |
12.3 million |
3.6% |
|
September |
10.9 million |
3.2% |
|
August |
23.5 million |
6.9% |
|
July |
25.6 million |
7.6% |
|
June 28 |
42.2 million |
12.5% |
|
June 1 |
47.7 million |
14.1% |
|
May |
50.3 million |
14.9% |
|
April |
54.8 million |
16.3% |
|
March |
58.0 million |
17.2% |
|
February |
49.6 million |
14.8% |
Data source: Qualcomm.
...and we're back to a negative trend, making the October boost look like an outlier.
What's new?
The October update came with absolutely no news other than the new number of tendered shares and the postponed expiration date. This one's slightly different.
Other than providing another recount and a later expiration date (Dec. 15 this time), Qualcomm also stated that the tender offer may have to be extended all the way into next year.
"While the parties continue to work to complete the transaction by the end of calendar 2017, the closing may occur in early 2018," the announcement stated. That's the first time the company admitted that the NXP merger might not close in 2017.
Image source: Getty Images.
NXP and Qualcomm investors are still waiting for news on the paused deal process in Europe, and this filing provided no news on that front. Qualcomm has presented a new deal package to the European Commission, including a few concessions addressing the regulator's concerns. A recent Bloomberg report, citing anonymous insiders, said that the final approval may come before the end of 2017, but only after leaving some of NXP's industry-standard patents out of the deal. Make of that what you will, but the Commission hasn't made any official ruling so far.
Furthermore, Qualcomm's statement made no mention of Broadcom's (AVGO +4.58%) unsolicited proposal to buy Qualcomm in a $130 billion blockbuster deal. Qualcomm's management has rejected that proposal, but Broadcom "remains fully committed" to that acquisition. That proposal stands whether or not Qualcomm completes its NXP merger, as long as the terms of that deal don't change too dramatically along the way.
Over the next few months, Qualcomm may combine with NXP and/or Broadcom in one of several unique configurations. The NXP merger still looks like a realistic target, but I'm not so sure about Broadcom's even larger ambition.
