Even as Qualcomm’s efforts to sway NXP shareholders showed signs of growing futility, the company announced it was extending its acquisition offer by another 10 days.
This marks the third extension in the past month, and with each successive announcement Qualcomm has noted that fewer shareholders of NXP semiconductors have tendered their shares.
In the latest press release, Qualcomm said that 51,995,023 NXP common shares, or about 15.1 percent of the outstanding NXP common shares, had been tendered as of yesterday.
On March 16, NXP shareholders had tendered 56,605,079 shares, or about 16.5 percent. One week before that, the number stood at 65,276,925 NXP shares, or 19 percent.
The collapse of interest comes despite the fact that Broadcom’s hostile takeover bid for Qualcomm had been blocked by the U.S. government for security reasons. During that fist fight, Qualcomm had raised its bid for NXP from $39 billion to $44 billion in February.
Qualcomm original offered to buy NXP back in October 2016, but NXP shareholders were less than enthusiastic. And 18 months later, they seem to be even less so.
It’s unclear what Qualcomm hopes to gain with the extension, unless it is contemplating an increased offer.
If it drops the bid, Qualcomm has said it would increase share buybacks to support its own share price. But problems closing the deal are just the latest indication of trouble for a company that has seen revenues drop for three straight years and is facing some significant legal disputes.