NXP Stock Jumps 11% on Acquisition Rumors

NXP stock has rallied 22.4% this year on the company’s strong fourth-quarter results. However, the stock started heading downward on February 25 after NXP CFO Peter Kelly stated at the Morgan Stanley Technology, Media and Telecom conference that demand in China (FXI) is weaker than expected.

NXP is a leader in the automotive chip market and was in acquisition talks with Qualcomm (QCOM) between October 2016 and July 2018. However, the companies’ $44 billion deal was held up by the US-China trade war, and Qualcomm withdrew from the deal by paying a $2 billion termination fee to NXP. Rumors of a potential acquisition by Samsung may have excited NXP investors with the prospect of finally earning the acquisition premium they missed in the potential Qualcomm deal.

View more information: https://marketrealist.com/2019/03/nxp-stock-jumps-11-on-acquisition-rumors/

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