Technology

Technology Sector Update for 05/31/2017: NXPI,QCOM,CTRL,APPS

Top Tech Stocks

MSFT -0.73%

AAPL -0.65%

IBM +0.55%

CSCO -1.14%

GOOG -0.05%

Technology stocks regrouped Wednesday after several days of outperforming most other sectors, with shares of tech companies in the S&P 500 posting a 0.2% decline.

In company news, NXP Semiconductor rose to a two-year high on Wednesday, topping out today at its best share price since May 2015 at $109.82 apiece after Qualcomm ( QCOM ) extended the deadline for its $47 billion tender offer for NXP Semi shares until June 28 amid renewed talk several of the chipmaker's major shareholders were seeking to boost their payoff above the $110 per share Qualcomm currently is offering.

Elliott Management Corp and at least two other institutional investors are preparing for talking with NXP Semi management in a bid to persuade them to reopen the terms of proposed merger, people familiar with the process told Bloomberg. At $110 per share, the equity portion of the transaction is worth about $36 billion with Qualcomm also agreeing to take on around $11 billion of NXP Semi debt.

Qualcomm earlier Wednesday said only about 14.1% of NXP Semi's outstanding stock has been tendered through last night. Qualcomm also said it filed merger-control documents necessary for the deal to proceed with the appropriate authorities in South Korea, Mexico, Japan and Taiwan during May.

In other sector news,

(+) CTRL, Needham & Co. resumes analyst coverage with a Buy rating and a $22 price target.

(-) IRBT, Canaccord Genuity downgrade to Hold from Buy; also sets a $90 price target.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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