When Mergers Attack — NSM Edition

Merger Monday proved that it’s still very much in effect.  Texas Instruments (TXN) is acquiring National Semiconductor (NSM) for $6.5 Billion in an all-cash transaction.

Much has already been written about this transaction so there is very little to add other than that this deal moves the relative valuation of the two companies back to the bottom-side of the 2006-2007 range.  The transaction represents a <70% premium on NSM.  Is this type of premium we can expect of future deals?  If so, this market can continue to the upside.  I see this as constructive to the bull case and a big blow to the bears.  This deal does not have any of the markings of an epic top-ticking blockbuster transaction.

Read:

When Mergers Attack — POT Edition (Dynamic Hedge)

When Mergers Attack — BUCY Edition (Dynamic Hedge)


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