Why Qualcomm Prefers to Be the Acquirer

While Qualcomm (QCOM) is fighting to block Broadcom’s (AVGO) bid to acquire it, it’s working on an acquisition of its own. The company may be on the verge of acquiring NXP Semiconductors (NXPI), a fellow chipmaker based in the Netherlands. While Qualcomm is rebuffing Broadcom’s bid, which offers a ~28% premium, its offer to purchase NXP Semiconductors at $110 per share represents a premium of ~11.5% based on the stock’s closing price before the bids were disclosed.