Pelakon senior, Wafa Abdul Kadir yang sebelum ini pernah dilaporkan mengidap kanser ovari dua tahun lalu kini berdepan kanser peritoneal tahap 4, Berkongsi perkembangan terbarunya itu, Penasihat Agama dan Media Persatuan Pengguna Islam Malaysia (PPIM) dan Konsultan Perawatan Islam, Datuk Ustaz Tuan Asmawi Tuan Umar menyatakan pelakon itu pasrah menempuhi kehidupannya meskipun menahan kesakitan dan tidak berupaya untuk banyak bergerak.
Qualcomm’s Odds of Boosting NXP Bid Are Rising By Michael J. Kramer | June 28, 2017 — 12:18 PM EDT
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Qualcomm Inc. (QCOM) cannot afford to lose its pending acquisition of NXP Semiconductors N.V. (NXPI), but the latest tender offer results put the deal in jeopardy. With the poor showing, Qualcomm extended the offering period for NXP by another month. Today's news suggest that investors are likely not pleased with the current offer price of $110 per share.
For Qualcomm, the importance of this deal cannot be overstated. (See also: Why Qualcomm May Have to Pay $45 Billion for NXP.) Qualcomm has come under increased pressure for its licensing practice for chips that are used in Apple iPhones. NXP offers Qualcomm a chance to diversify its revenue stream with its breadth of chipsets that range from near-field communication to the automotive sector.
The recent tender period showed that only 12.5 percent of total shares outstanding were submitted, which is a decline from last month's level, and is the worst turnout period to date.
With each passing tender, we can see that the number of shares making it into the offering are fewer, which is an illustration that the current bid price of $110 per share is likely not enough to close the deal.
The options market has been pricing in the likelihood of the merger getting a higher price for months. As we previously noted, the January 2018, $110 calls are currently trading at $3.55. In February, those very same options were trading at around $0.55.
(Interactive Brokers TWS)
The price of NXP's underlying stock has also increased. A person looking to buy these calls would need NXP shares to trade at nearly $113.50 just to break even. In fact, we are seeing something similar in NXP's January 2018, $115 calls as well, with those options trading at nearly $2.00, implying the price would need to rise to $117 to just break even.
These are no small bets being made, either, with nearly 34,000 contracts open for the $110 calls open, and 16,000 contracts open for the $115 calls. That equates to a notional value of approximately $12 million for the $110 strikes and roughly $5.2 million for the $115 strikes. In fact, if you look through all of the months for NXP's option chain, you can find similar positionings.
NXPI Chart
NXPI data by YCharts
The pressure is mounting on Qualcomm to come up with a better price for NXP, and it doesn't look like investors are budging. In fact, the recent tender tells us that more investors are getting on board with the idea of a higher price coming. The options market has been saying now for quite some time that an increased bid is likely, and the recent tender offer provides more evidence that one will be needed to close this deal – something Qualcomm cannot afford to lose.
Michael Kramer and the clients of Mott Capital Management LLC own shares of NXPI.
Michael Kramer is the Founder and Portfolio Manager of Mott Capital Management LLC, a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request, the advisor will provide a list of all recommendation made during the past twelve months. Past performance is not indicative of future performance.
Read more: Qualcomm’s Odds of Boosting NXP Bid Are Rising | Investopedia https://www.investopedia.com/news/qualcomms-odds-boosting-nxp-bid-are-rising/#ixzz5RqLZfnhg
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