LONDON (ShareCast) - (ShareCast News) - US chip giant Qualcomm upped its bid for NXP Semiconductors to roughly $44bn on Tuesday as part of its efforts to win shareholder support for the acquisition and further its expansion into the fast-growing motor vehicle chip market and reduce its reliance on smartphones.
Qualcomm, itself fending off a $121bn takeover approach from Broadcom, raised its offer for the company that supplies Android and Apple phone makers with their chips, to $127.50 per share.

Qualcomm stated that it now has the support of a major NXP shareholder group led by hedge fund Elliott Management, which had previously opposed the proposed acquisition.

The proposal, which came less than a week after Broadcom and Qualcomm execs came face-to-face to talk over their differences, sees Qualcomm chase a minimum of 70% of NXP's outstanding shares in a tender offer, down from the 80% outlined in the previous agreement, as the California-based firm could then force the remaining shareholders to sell out without further negotiations.

Qualcomm claimed to have entered into agreements with nine NXP stockholders, who together hold around 28% of NXP's issued share capital, including top shareholders Soroban Capital Partners and Elliott.

Elliott, the activist hedge fund which had vehemently opposed Qualcomm's previous $110 per share offer as it "undervalued" NXP, said it was glad the firm's true value had been recognised in the updated transaction terms.

Qualcomm extended its tender offer until March 5, a day before its shareholder meeting.

"Our preference is to close NXP, but not at all costs," Qualcomm's chief financial officer George Davis said in January.

As of 1420 GMT, Qualcomm shares had lost 2.85% in pre-market trading to $64.85 each, while NXP had gained 6.24% to $118.50 a share.

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