Hedge fund manager Elliott cuts NXP exposure after Qualcomm deal fails

By Maiya Keidan and Carolyn Cohn

LONDON (Reuters) - Hedge fund manager Elliott cut its stake in NXP Semiconductors (NASDAQ: NXPI) after Qualcomm (NASDAQ: QCOM), the world's biggest maker of chips for mobile phones, called off a $44 billion deal to buy NXP last week, a recent filing with the U.S. regulator showed.

Activist Elliott first announced a stake in NXP a year ago, launching a campaign to push for a higher price tag in the Qualcomm deal, which drove the bid up from $38 billion.

Qualcomm's acquisition of NXP failed when the Chinese regulator refused to approve the deal by a deadline on June 25.

China's State Administration for Market Regulator said in a statement in Friday that proposals put forth by the firms to resolve antitrust concerns were insufficient, but it hoped to continue communication with Qualcomm.

Elliott reduced its position to 3.5 percent, from 5.5 percent, a filing with the U.S. Securities and Exchange Commission on July 31 showed. It is no longer NXP's top shareholder.

An Elliott spokeswoman declined to comment.

Many hedge funds bought into NXP months ago in a bet the deal would succeed but investors and analysts had pointed to reasons to hold on to the stock.

Shares in NXP fell more than 6 percent after the deal collapsed but have since regained around 3 percent.

(Reporting by Maiya Keidan)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Trump says press secretary Leavitt to leave job at month's end
• Robinhood July 2026: crypto volumes drop, equity trades rise
• Farmmi receives Nasdaq notice for falling below minimum bid price