Sat, Nov. 26, 9:11 AM
- It's no surprise that Republican administrations in general are seen as more friendly towards mergers than Democrats, and since the election, arbitrage spreads (the difference between a target's deal price and its current price) have tightened to the 8-9% range from 11%.
- However, on an annualized basis, there are still plenty of deals out there offering double-digit returns.
- Source: Vito Racanelli in Barron's
- Merger-arb shop WallachBeth Capital is fan of Harman International Industries (NYSE:HAR), which earlier this month drew a cash bid from Samsung for $112 per share vs. its close Friday of $109.74. Another pick is B/E Aerospace (NASDAQ:BEAV) which closed at $59.79 and has a cash and stock deal in hand from Rockwell Collins (NYSE:COL) for $62 per share.
- Lutetia Capital likes Cabela's (NYSE:CAB), which closed the week at $62.50 vs. Bass Pro Shops' $65.50 bid.
- The Merger Fund's Roy Behren is confident Qualcomm's (NASDAQ:QCOM) bid for NXP Semiconductors (NASDAQ:NXPI) will pass regulatory muster. NXP's close yesterday of $99.51 is a full 10.5% below the $110 cash offer. If the deal closes in nine months, it's an annualized return of 12.6%.
- Another deal with maybe overblown antitrust concerns is Danone/WhiteWave Foods (NYSE:WWAV). The spread is just 2%, but a close early next year would mean an annualized return over 10%.
- Seeking Alpha contributor Chris DeMuth stays on top of merger arb spreads with his M&A Daily.
Fri, Nov. 18, 9:29 AM
- October 27: Qualcomm to buy NXP Semiconductors for $47B
- Qualcomm's (NASDAQ:QCOM) offer ($110 per every outstanding share) for NXP Semiconductors (NASDAQ:NXPI) is set to expire February 6, 2017 at 5PM ET.
- Required satisfaction of minimum tender conditions and regulatory approvals in various jurisdictions noted.
Wed, Nov. 16, 2:35 PM
- In a note on the hypothesis, analyst Ian Ing spotlights advantage for Nvidia's (NVDA +6.2%) GPUs, Intel's (INTC -0.5%) and Xilinx's (XLNX -0.4%) field-programmable gate arrays, and Intel's co-processors and full-custom solutions. Regarding Advanced Micro Devices (AMD +9.4%), considers to be "too resource constrained to fully address the opportunity."
- Potential and acceleration in data center machine learning ($2B-$4B), autonomous driving ($9B+ per 10% unit share increment) and deep learning ($4B) [drones, robots, niche verticals etc.] represent base calculation of the $15B+ figure.
- With developments evolving quickly in the space, and other supply players involved (i.e. Qualcomm/NXP Semiconductors etc.), shifts in advantage and opportunity throughout the field, and these names, are of course nonetheless constantly in motion.
- Ing rates Nvidia and Intel at Buy with respective $87 (current price $91.44) and $44 (current price $34.73) targets. Xilinx is set at Neutral with a $35 target (current price $53.66) while Advanced Micro Devices is unrated in the issued commentary.
Mon, Oct. 31, 9:36 AM
- Previously maintained Neutral rating and $55 price target (current price $68.40).
- Romit Shah likes scale and expansion of total addressable market resulting from NXP Semiconductors deal and highlights projected 30% accretion in earnings, to $6 per share, for 2018.
- Further considers Qualcomm not fully owned among institutional investors in comparison to peers (Applied Materials, Broadcom, Texas Instruments cited) and despite outperformance on the year so far, notes shares have performed below-sector and below-market for extended periods of time.
- Qualcomm (NASDAQ:QCOM) +0.80%, NXP Semiconductors (NASDAQ:NXPI) +0.06% at the open.
Fri, Oct. 28, 6:44 PM
- With the help of a very big deal -- AT&T's (NYSE:T) $85B offer for Time Warner (TWX -0.9%) -- companies have set a monthly record for merger and acquisition activity.
- Firms have agreed to M&A valued at more than $251B this month, Dealogic says. That surpasses a previous record month, July 2015, at $240B. The tech sector (signified most recently by Qualcomm's (QCOM -2.4%) $39B deal for NXP Semiconductors (NXPI +0.7%)) has accounted for a fourth of U.S.-targeted deals and 19% by value, just ahead of healthcare.
- Last week was especially hot, with $177B in activity (itself a record for an M&A week).
Thu, Oct. 27, 6:52 AM
- Qualcomm (NASDAQ:QCOM) has agreed to buy NXP Semiconductors (NASDAQ:NXPI) in a deal that values the chip maker at $110 a share, or $47B, including debt, as it seeks to expand the reach of its chips from phones to cars.
- The combined company is expected to have annual revenues of more than $30B, serviceable addressable markets of $138B in 2020 and leadership positions across mobile, automotive, IoT, security, RF and networking.
- QCOM +2.1%; NXPI +3.2% premarket
Wed, Oct. 26, 10:55 PM
Tue, Oct. 25, 5:35 PM
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Fri, Oct. 21, 9:52 AM| Fri, Oct. 21, 9:52 AM | 76 Comments
Thu, Oct. 20, 3:02 PM
- Qualcomm and NXP Semiconductors (NASDAQ:NXPI) were considered to be off by less than 10% regarding valuation two weeks ago.
- Bloomberg's now reporting a deal may be announced sometime next week.
- Qualcomm (NASDAQ:QCOM) shares higher by 2.25% on the day, 1.85% of which has been realized over the last ten minutes.
- Update: All-cash deal under consideration, disclosure before Qualcomm's November 2 earnings suggested.
Thu, Oct. 6, 2:36 PM
- Bloomberg notes NXP Semiconductors (NXPI +1.6%) and Qualcomm (QCOM +1.5%) are off by less than 10% in terms of valuation.
- Deal structure of 75% cash, 25% stock cited as preferred by Qualcomm with an all cash deal preferred by NXP. Qualcomm looking at $110 per share, NXP at $120.
- Qualcomm considered only takeover-interested party to be involved.
- Development is notable with the situation reportedly not imminent just hours ago.
Thu, Oct. 6, 10:03 AM
- Discussions with Qualcomm (QCOM) reportedly remain ongoing, though a deal is not considered to be imminent.
- A $120 level would be in line with earlier models out of Bernstein.
- NXP Semiconductors (NASDAQ:NXPI) is trading mostly unmoved (-0.70) on the report, though is up more than 23% since news Qualcomm was interested in a takeover first broke.
Fri, Sep. 30, 10:22 AM
- RBC Capital Markets analyst Amit Daryanani notes a deal would mark a good use of cash for Qualcomm, increase its portfolio diversity, allow it to leverage IoT plans into automotive and other sectors and potentially offer material accretion over upcoming years. On the other end, Daryanani points out some concerns for Qualcomm relating to debt position and integrations of NXP Semiconductors stemming from the latter's recently closed Freescale merger.
- Bernstein's Stacy Rasgon and Jefferies' Mark Lipacis comment on potential buyout prices, offering respective approximate $120 and $136-$172 ranges.
- NXP Semiconductors (NXPI +7.1%) is trading higher by around 25% since mid-day yesterday while Qualcomm (QCOM +2.9%) is up over 10% on the same term.
Thu, Sep. 29, 3:00 PM
Thu, Sep. 29, 1:17 PM
Fri, Sep. 16, 1:44 PM
- While already anticipated, Intel (INTC +2%) components are now confirmed to be installed within certain iPhone 7 configurations. Two Intel RF transceivers, a baseband modem and RF power management ICs are noted.
- Modems, transceivers and power management ICs provided by Qualcomm (QCOM +0.2% ) are also confirmed to be utilized in other device variations. Qualcomm had historically maintained an exclusive provider position of modem components for previous iPhone iterations.
- Supplies from Skyworks Solutions (SWKS -1.9%), Cirrus Logic (CRUS -1.8%), Samsung Electronics (OTC:SSNLF), Taiwan Semiconductor Manufacturing Company (TSM -0.7%), NXP Semiconductors (NXPI -2.2%), Broadcom (AVGO -1.3%), Qorvo (QRVO -2.4%), Texas Instruments (TXN -0.5%), Toshiba (OTCPK:TOSBF +4.4%), Lattice Semiconductor, (LSCC -0.6%), Dialog Semiconductor (OTC:DLGNF), SK Hynix (OTC:HXSCF) and other makers also so far validated.