Shareholders in semiconductor company NXP are pressing the company to renegotiate with Qualcomm, which agreed an acquisition deal late last year.
According to Bloomberg, “at least three” large NXP shareholders are “agitating for a higher price,” arguing the previous offer undervalues the company. Its share price is still below the level offered by Qualcomm, although the gap closed since the deal was announced.
Qualcomm, meanwhile, is in the process of securing regulatory approvals for the acquisition.
The company extended an offer to purchase shares in NXP, having so far received tenders representing 14.1 per cent of the total – with at least 80 per cent required to go ahead.
Investopedia noted that, not only is this number not rising particularly quickly, it actually decreased. This led to speculation some shareholders are holding out, either due to a belief Qualcomm will increase its bid, or because they are waiting for more progress on the regulatory front.
A decision by the EU will be an important next step: this is scheduled for early June.
The acquisition of NXP is important for Qualcomm, because it will enable the company to boost its performance in markets beyond its core strength in mobile. In particular, markets including IoT, automotive and security were highlighted.