Nxp Semiconductors N.V. (NXPI)

[wshaw14]

Do NXP shareholders really want to pay this break up fee???? (" the company would owe Qualcomm a breakup fee of $1.25 billion") If so I would be happy to accept it. Paul Singer is playing with fire again, he may get burned again.

If NXP breaks off the engagement, presumably because a better offer turned up, the company would owe Qualcomm a breakup fee of $1.25 billion. If Qualcomm fails to complete its pre-closing reorganization, or external forces such as regulatory reviews trip up the deal, Qualcomm would send $2 billion to NXP instead.

These breakup fees are quite significant. NXP's trailing free cash flows currently stand at $1.4 billion while Qualcomm's bubbled up to $6.9 billion. A canceled deal could essentially double or erase NXP's cash flows, and Qualcomm would certainly feel the effects deep in the wallet.