Qualcomm has increased its bid for NXP Semiconductors NV by 16 percent from $110 a share to $127.50 a share, as the company is trying to win NXP shareholders approval.
The increased bid, which values NXP at $44 billion, is a response to NXP investors who have called for a higher price. But it is also helping Qualcomm to better fight off the $121 billion acquisition attempt from rival Broadcom Ltd.
Broadcom has said its bid for Qualcomm is contingent on the NXP deal going through at the previous price.
Qualcomm has also lowered the minimum threshold needed to win approval for the NXP deal to 70 percent, the company said in a statement Tuesday.
Qualcomm said the deal for NXP has won approval from eight of nine required government regulatory bodies. Approval is still needed from China's ministry of commerce.
Steve Mollenkopf, Chief Executive Officer of Qualcomm Incorporated, said, "Qualcomm's leading SoC capabilities and technology roadmap, coupled with NXP's differentiated position in Automotive, Security and IoT, offers a compelling value proposition. We remain highly confident in our fiscal 2019 Non-GAAP EPS target of $6.75-$7.50, which includes $1.50 per share accretion from the acquisition of NXP. With only one regulatory approval remaining, we are working hard to complete this transaction expeditiously. Our integration planning is on track and we expect to realize the full benefits of this transaction for our customers, employees and stockholders."
Qualcomm is holding a meeting on March 6, where shareholders will vote on a slate of Broadcom nominees to the board. Qualcomm's management insists that Broabcom's take over offer the company is low.
Proxy advisory firms Glass Lewis & Co. and Institutional Shareholder Services Inc. support Broadcom and recommends Qualcomm stockholders vote on the BLUE proxy card "FOR" four of Broadcom's independent director nominees.
Qualcomm's tender offer for NXP is valid until March 5.