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Street Speculates 2 Suitors Courting NXP Semiconductors

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Street Speculates 2 Suitors Courting NXP Semiconductors

Two is company, three is a crowd. Close on heels of a report suggesting QUALCOMM, Inc. (NASDAQ: QCOM)'s interest in NXP Semiconductors NV (NASDAQ: NXPI), rumors have emerged of a possible second suitor.

Quoting people familiar with the matter, the Dow Jones Newswire reported Thursday Qualcomm is pursuing a deal with NXP to buy the latter.

Meanwhile, it has emerged that Broadcom Ltd (NASDAQ: AVGO) may also be interested in NXP.

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An analyst at Evercore said Qualcomm's interest in NXP could be very real, with the deal expected to be done with cash and double-digit accretion. The analyst expects the deal to be priced at $116.

Evercore also brought up the possibility of Broadcom stepping in to bid for NXP, as it is seen to have appetite for a big deal similar to Qualcomm. The firm also feels such a deal could be relatively clean on anti-trust, given exclusiveness in terms of their competitors.

When contacted, NXP Global PR director declined to comment on Qualcomm's reported bid. Meanwhile, Qualcomm spokespersons told Benzinga that it is not the company's practice to comment on rumors as a matter of corporate policy.

At time of writing, Qualcomm shares were up 3.69 percent at $69.94, NXP Semiconductors shares were up 8.72 percent at $104.50 and Broadcom shares were gaining 0.72 percent at $172.73.

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