Send me real-time posts from this site at my email
Voting is over

Qualcomm Will Walk Away from NXP Semi. Deal?

With Chinese regulators still dragging their heels on approving the Qualcomm (QCOM) buyout of NXP Semi. (NXPI), the merger is at risk in being abandoned on July 25. Qualcomm has repeated the intent to walk away and hand NXP Semi. the $2 billion breakup fee. 

Unless Qualcomm has some assurance that China will approve the deal in August, the wireless giant has no choice but to move on. The company has a large buyback lined up as Plan B and the management team desperately needs to show the $1.50 EPS boost from either closing the NXP Semi. deal or repurchasing shares. Hanging out waiting on China doesn't meet either goal. 

My guess is that Qualcomm walks away, but investors can win either way. More research: NXP Semi.: Nothing To Sweat 

Disclosure: Long QCOM 

Qualcomm Will Walk Away from NXP Semi. Deal?

Voting is over
Waiting for
the right answer
Agreed
52 people
Disagreed
8 people

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue