NXP, From Hot to Buyout Hot (NXPI, INTC, BRCM, QCOM, ARMH)

NXP Semiconductors NV (NASDAQ: NXPI) may not be the biggest household name of chip stocks in America.  It may become big news in the coming hours, days, or weeks.  The Dutch news outlet De Telegraaf has reported that NXP the company is in acquisition talks with the likes of Intel Corporation (NASDAQ: INTC), Broadcom Corporation (NASDAQ: BRCM), and Qualcomm Incorporated (NASDAQ: QCOM).

What NXP is involved in chips and signal devices used for identification, wireless, lighting, industrial, consumer electronic, security, and automotive applications.  The company has only been public after private equity-backers had an IPO for the company last August.  Shares have almost tripled from its lows seen at the end of last summer after its IPO.

Just last month it entered into a $500 million loan covenant and this year the company also extended its strategic agreement with ARM Holdings plc (NASDAQ: ARMH) for Microcontrollers. Another developments since last year’s IPO is that it sold off its sound solutions operation to Dover Corp. for about $855 million in a pact signed at the end of 2010.

Its IPO was on August 6, 2010 and it sold 34 million shares at $14.00 per ADR.  The ADRs hit a low of $10.23 in the weeks after the IPO and the high so far had been $33.87.  In the pre-market session we have shares up about 5% at $34.60 for what will be a new 52-week high if the level holds.  Its market cap after yesterday’s close was some $8.2 billion and its 2010 revenues were the equivalent of $4.4 billion.

As a reminder, any time you see reports without definite sources and without details, this is an instance that should be treated as a rumor until more concrete news surfaces.

JON C. OGG