Elliott Advisors, which advises funds that collectively hold an economic interest in NXP Semiconductors N.V. (NXPI) of approximately 6%, released a letter to shareholders and a presentation making the case that it believes NXP is worth $135 per share on an intrinsic standalone basis – far above the $110 offered by QUALCOMM Incorporated (QCOM) in its bid to acquire the company. The presentation included the following key takeaways: Elliott believes that NXP is worth $135 per share on a standalone basis without any control premium and that the Company is well positioned to benefit from some of the exciting growth engines of the semiconductor market; Elliott believes Qualcomm’s offer of $110 per share is acting as a ceiling on NXP’s valuation – NXP’s peers1 have traded up 65% since rumors of Qualcomm’s interest arose,2 outperforming NXP by 25%; and Qualcomm’s offer was highly opportunistic – as a result of certain identifiable temporary circumstances, NXP’s stock price was depressed in 2016 and Qualcomm’s $110 per share offer took advantage of those anomalies. In support of its own work, Elliott has retained UBS Investment Bank as its financial advisor to perform a financial analysis with respect to NXP. UBS has delivered the UBS Valuation Report to Elliott and Elliott looks forward to sharing that report with its fellow shareholders shortly.
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