U.S. Markets closed

NXP's Risk-Reward Ratio Looks Good as Qualcomm Deal Deadline Draws Near

Eric Jhonsa

After dropping close to 4% in early-Wednesday trading on news that that the Trump Administration has floated a giant new Chinese tariff list, NXP is trading 17% below Qualcomm revised $127.50-per-share buyout price. In April, Qualcomm and NXP announced that they had extended the end date for their deal agreement, originally inked in the fall of 2016, by three months to July 25. Qualcomm said that if it hasn't received the go-ahead from China's Ministry of Commerce (MOFCOM) by that date, it will pay NXP a $2 billion merger termination fee by the morning of the 26th.