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   Strategies & Market TrendsSpeculating in Takeover Targets


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To: richardred who wrote (4627)11/6/2017 8:27:46 AM
From: richardred
   of 6101
 
Broadcom makes unsolicited $130B bid for Qualcomm in largest tech deal in history
Terri Cullen | David Faber
Published 1 Hour Ago Updated 19 Mins Ago.


Broadcom makes unsolicited bid for Qualcomm in largest tech deal in history 39 Mins Ago | 03:33
Broadcom on Monday made an unsolicited offer to buy Qualcomm, in a deal that that would be the largest technology acquisition ever.

The $70 a share bid, equal to more than $130 billion, is comprised of $60 in cash and $10 per share in stock. It also include Broadcom's willingness to have Qualcomm complete its pending acquisition of NXP Semiconductors for more than $38 billion in cash, sources told CNBC, which reported Sunday evening the offer was likely coming Monday.

But the bid stands whether that acquisition is completed or not, Broadcom said.

Qualcomm shares were halted for trading in premarket trade.

Qualcomm's stock, traded on the Nasdaq, surged by more than 12 percent on Friday amid speculation that Broadcom was preparing a bid. It finished the session at $61.81. Broadcom's offer is at a premium of 27.6 percent to Qualcomm's closing price of $54.84 on Thursday, a day before media reports of a potential deal pushed up the company's shares.

Broadcom has been working on its proposal for months — a bold bid to become a dominant supplier of communications chips to the wireless industry — and is believed to have approached Qualcomm privately about its offer, but was quickly rebuffed, sources told CNBC. The company had originally considered an attempt to buy Qualcomm prior to that company's deal to buy NXP more than one year ago, but upon getting no traction at that time, retreated.




Getty Images
Qualcomm Inc. CEO Steve Mollenkopf.This time, Broadcom is determined to bring its offer to the attention of Qualcomm shareholders. People familiar with the company's thinking indicate Broadcom will not shy away from initiating a proxy fight to gain seats on Qualcomm's board of directors in support of its offer.

Qualcomm's annual meeting is currently scheduled for March of next year with the deadline for nominating directors sometime in December.

Qualcomm, however, is expected to strongly resist Broadcom's proposal. People close to the company expect it to indicate the offer price is far below what it would expect in a takeover. In addition, Qualcomm is expected to raise concerns that any combination with Broadcom would raise significant antitrust concerns.

While Broadcom is expected to indicate its willingness to let Qualcomm complete its deal to acquire NXP, it is also expected to encourage the company not to raise its current $110 cash deal to acquire the company. Qualcomm is under pressure from NXP shareholders to raise its bid for that chip company, or face the likely prospect it will not be able to meet the minimum threshold needed to take control of the company under Dutch law.

A tie-up would combine two of the largest makers of wireless communications chips for mobile phones and raise the stakes for Intel, which has been diversifying into smartphone technology from its stronghold in computers.

cnbc.com

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To: richardred who wrote (4628)11/6/2017 8:53:23 AM
From: richardred
   of 6101
 
These are the people below Broadcom must convince. I heard an analyst say this deal could be accretive to 80 dollars. Could this be the price that might convince them? IMO There still is a smaller stock portion of the offer that might be raised to entice majority holders? Brodadcom stock is going up with it's unsolicited bid. I think that shows this is a good deal for Broadcom. Hypothetically speaking, a knock out blow might be. The same cash portion along with Broadcom stock totaling 85.00. This gives major shareholders in Qualcom a chance to still participate by way of Broadcom stock.
I'm staying out. However it sure will be interesting to see what happens.


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To: richardred who wrote (4629)11/6/2017 10:03:59 AM
From: waitwatchwander
   of 6101
 
There has to be a lot of Qualcomm stock held in ETF's. On matters like this, how do those people vote?They're only concern is moving out of one issue and into another.

Their new holding in this case is likely highly overpriced while they'll be getting cash for the underpriced part they currently hold. Hmmmm

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To: waitwatchwander who wrote (4630)11/6/2017 10:19:34 AM
From: richardred
   of 6101
 
Sorry, I've never owned an ETF fund. So I can't give good personal knowledge on the matter. However, I've found this older link that might be of some help with your question.

snip> it is the fund firms that maintain the right to vote in corporate elections. “Most investors don't know that when they buy an ETF, they also give that ETF the right to vote at all the underlying companies owned by that ETF.

ETF Proxy Voting Records In Focus by Michael Johnston on July 8, 2009


For the last several years, ETFs have been the darlings of the financial world, widely praised for their ability to offer cheap, diversified exposure to nearly every corner of the market and the flexibility that sets them apart from traditional open-end funds. And while there is little debate over certain advantages of ETFs, it is beginning to seem like the honeymoon with the financial press is over, as many analysts are digging a litter deeper into the nuances of exchange-traded products and discovering that they are not without their flaws. Last week, The Wall Street Journal’s Ian Salisbury delved into the proxy voting habits of ETF firms, revealing some rather intriguing and potentially alarming patterns.

As indexing and passive investing strategies have become increasingly popular, the power wielded by ETF firms over the management of some of the world’s largest corporations has grown significantly. While the interests in these companies represent the assets of individual investors throughout the countries, it is the fund firms that maintain the right to vote in corporate elections. “Most investors don't know that when they buy an ETF, they also give that ETF the right to vote at all the underlying companies owned by that ETF,” says Jon Lukomnik, program director at the Investor Responsibility Research Center Institute (IRRCI), the organization that completed the study. ETF firms argue that they are best equipped to handle the voting process and represent their investors’ best interest, while some critics have argued that they’re “asleep at the switch.”

Study Results The study examined the proxy voting policies and and recent voting records of seven of the largest ETF sponsors ( iShares, SSgA, Vanguard, Invesco PowerShares, ProShares, Rydex, and WisdomTree). “Our analysis revealed wide variation in both the voting policies of the seven dominant ETF sponsors, as well as how they actually voted on a sample of twenty-one specific votes on a variety of important governance and social policy issues,” said Scott Fenn, senior managing director for policy at PROXY Governance. The proposals in question ranged from executive pay at Comcast to whether to appoint an independent chairman at Exxon Mobil. Among the specific findings:

  • ProShares voted with management on only five of the 21 proposals, while Rydex sided with management on 19 of them. The rest of the fund firms fell somewhere in between. As such, there is significant variation in the voting philosophies and patterns of the largest ETF sponsors, with some funds much more likely to vote against management on both shareholder and management-sponsored proposals than other funds.
Issuer % Votes Against Management Proposals % Votes For Shareholder Proposals (Governance) % Votes For Shareholder Proposals (Compensation) % Votes For Shareholder Proposals (Social Issues)
iShares 16.7% 71.4% 0% 0%
State Street 33.3% 57.1% 50% 0%
Vanguard 16.7% 28.6% 0% 0%
PowerShares 66.7% 100.0% 100% 0%
ProFunds 33.3% 100.0% 100% 80%
Rydex 0.0% 14.3% 0% 20%
WisdomTree 40.0% 83.3% 33.3% 0%
(Keep in mind that there is a relatively small sample size for each proposal category. Also, it is noted that Vanguard regularly abstains on social and environmental proposals)

  • The three largest ETF sponsors are somewhat less likely to vote against management on shareholder proposals than are the smaller fund companies considered in the study. The three largest issuers also withold votes from incumbent director nominees at a greater number of companies than small funds. This appears to indicate that the witholding of votes is their preferred method for expressing dissatisfaction (rather than voting against management on specific proposals).
  • Funds that rely heavily on a proxy advisory firm for guidelines tend to vote against management proposals (and in favor of shareholder proposals) more frequently than those that rely on their own guidelines.
Since ETF firms are often among the largest individual shareholders in individual corporations, their voting policies can have important ramifications on shareholder protection and corporate governance. If major fund firms are unlikely to challenge management on controversial proposals, it is possible that the rise in popularity of ETFs has been detrimental to investor rights. But the results of the study are far from conclusive, and they seem to indicate that many fund firms do an excellent job of voting in an informed manner that is consistent with the best interests of their investors. In short, while the IIRCI study doesn’t indicate and devastating oversights by ETF firms, it does raise a few red flags and highlight another area that investors should consider carefully when choosing between particular ETF sponsors.

etfdb.com

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To: richardred who wrote (4549)11/6/2017 12:11:33 PM
From: richardred
   of 6101
 
Re-entered DLTH today. For some strange reason thinking of the Zappos acquisition by Amazon. At this point in time. In due time I see Amazon going more brick in mortar. Whole Foods just might be the start of a trend. This time only more smaller niche acquisitions they can continue to grow as not to stir the pot. As JCP & Sears and most clothing retailers are struggling. This company seems to getting it right.

CO. SNIP> Duluth Trading is a rapidly growing lifestyle brand for the Modern, Self-Reliant American.

Based in Belleville, Wisconsin, we offer high quality, solution-based casual wear, workwear and accessories for men and women who lead a hands-on lifestyle and who value a job well-done. We provide our customers an engaging and entertaining experience. Our marketing incorporates humor and storytelling that conveys the uniqueness of our products in a distinctive, fun way, and our products are sold exclusively through our content-rich website, catalogs, and “store like no other” retail locations. We are committed to outstanding customer service backed by our “No Bull Guarantee."

P.S. Carhart is another a company who's product I use and reminds me of Duluth. Woolrich is another.

>Carhart sells via many kinds of retailers but refuses to allow discount stores such as K-Mart to carry its products in order to protect its brand.

>Woolrich Awhile back the company announced they had plans to move more of their workforce to the United States.

Can textiles come back to the USA again? Many of these retailers had to cut their US workforce to MFG. overseas to be competitive. Just maybe customer experience. Along with excellent marketing, and US factories manned by efficient equipment can change that.?

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From: richardred11/6/2017 6:23:35 PM
   of 6101
 
MNTX -8K The dreaded accounting issues. I didn't see this one coming!

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To: richardred who wrote (4633)11/7/2017 9:02:40 AM
From: The Ox
   of 6101
 
Yes, a black eye but doesn't look devastating for MNTX. It also sets up a relatively perfect double top. A lot of support in the $7.50 range and below $6 could be a long term gift at this point?






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From: richardred11/9/2017 10:08:53 AM
   of 6101
 
RE-SNAK Taking my lumps. Sold out of my take under for redeployment elsewhere.

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From: richardred11/12/2017 9:29:36 PM
   of 6101
 
New HSBC chairman Mark Tucker eyes American takeovers

Aimee Donnellan
November 12 2017, 12:01am, The Sunday TimesHSBC has a troubled past in US acquisitions, but its chairman maintains an ‘optimistic view’ of future expansion

HSBC’s new chairman Mark Tucker has told investors that he is on the prowl for acquisitions, with American credit card businesses among his targets.

thetimes.co.uk

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To: richardred who wrote (2863)11/20/2017 10:29:48 AM
From: richardred
   of 6101
 
MRVL buying CAVM for $40 cash plus 2.1757 share. Mr McWilliams was spot on. SNIP> In his special report, McWilliams discussed eight of the companies he thinks are most likely to show an interest in Cavium. These include Marvell Technology (NASDAQ: MRVL


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