Investment Analyst Sam Frost joins Ben Nye in today's video, taking a look at a couple of the biggest proposed deals of the year.
First up, NXP Semiconductors (NASDAQ:NXPI). A supplier of integrated circuits to both the auto industry and mobile phone industry, we thought the company's leverage to automobile technology advancement and to the phone upgrade cycle made the shares attractive when we purchased the position. We still do. Now, however, we have been pleasantly surprised by the overtures made by Qualcomm (NASDAQ:QCOM) to acquire NXPI in an all-cash $110/share deal. What we can't understand is why NXPI trades at a 8-9% discount to the proposed price. Sam and Ben discuss the reasons why this could be the case and the merger arbitrage opportunity the news represents.