QUALCOMM, Inc. (QCOM) & ARM Holdings plc (ARMH), Intel Corporation (INTC) & MediaTek – Possible M&As: Chris Rolland

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QUALCOMM, Inc. (NASDAQ:QCOM) acquiring ARM Holdings plc (ADR) (NASDAQ:ARMH) and Intel Corporation (NASDAQ:INTC) acquiring MediaTek Inc. are possible scenarios, Chris Rolland said in a recent interview with CNBC.

The discussion centered on corporate inversions and detailed some of the firms that FBR Capital Markets looked at that could acquire other firms outside of the US and reincorporate with in another territory to diminish taxes. Rolland said that their firm looked at about 200 companies for their analysis taking into consideration sizes and the feasibility of a merger. He added that they came up with “thought provoking” combinations of companies.

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Regarding QUALCOMM, Inc. (NASDAQ:QCOM) and ARM Holdings plc (ADR) (NASDAQ:ARMH), the FBR Capital Markets VP said that the resulting firm if ever an acquisition happens between the two companies will be an intellectual property powerhouse in the mobile industry. He explained that the resulting company in this scenario would not only have the baseband side of the business which QUALCOMM, Inc. (NASDAQ:QCOM) now has but also the apps processor in mobile devices in which ARM Holdings plc (ADR) (NASDAQ:ARMH) has a significant position. This combination, he said, would be a royalty powerhouse.

As for Intel Corporation (NASDAQ:INTC) possibly acquiring MediaTek Inc., a Taiwanese company which also makes mobile applications processors, Rolland said that a possible deal makes sense even though it has a low probability of happening. MediaTek Inc., he noted, could invert and go to a lower tax territory while also giving Intel Corporation (NASDAQ:INTC) a larger role in the mobile applications processor industry. He noted that the chip giant has been wanting to go into this industry very desperately. He added that MediaTek Inc. is also the second largest baseband provider after QUALCOMM, Inc. (NASDAQ:QCOM). Intel Corporation (NASDAQ:INTC), Rolland noted, would also gain a lot of capacity if they acquire MediaTek Inc.

QUALCOMM, Inc. (NASDAQ:QCOM) shareholders includes Ken Fisher’s Fisher Asset Management which reported about 8.86 million shares in the company by the end of the first quarter of the year. Another shareholder is Generation Investment Management managed by David Blood and Al Gore which had about 7.59 million shares in the company during the same period.

ARM Holdings plc (ADR) (NASDAQ:ARMH) shareholders includes Ken Fisher’s Fisher Asset Management which reported, as of the end of March, that it had about 1.23 million shares in the company. Another hedge fund which had a position on ARM Holdings plc (ADR) (NASDAQ:ARMH) by the end of March is Daniel Benton’s Andor Capital Management with 1 million shares.

Intel Corporation (NASDAQ:INTC) investors includes D E Shaw which had about 1.76 million shares in the company as of the end of March. Another investor is George Soros’ Soros Fund Management which had 1.5 million shares in the company in the same period.

Disclosure: None

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