VNE - Magna unlikely to be able to match Qualcomm's bid for Veoneer analyst says

Magna International (NYSE:MGA) is likely unable to match Qualcomm's (NASDAQ:QCOM) $37/share bid for Veoneer (NYSE:VNE), according to a KeyBanc analyst. Magna (MGA) has a "limited" ability to counter Qualcomm (QCOM) is it would "stretch" Magna above its adj. debt/EBITDA target of 1.0x-1.5x and Magna's has "less favorable" deal terms, according to KeyBanc analyst John Vinh. While Vinh appreciates Qualcomm's (QCOM) diversification with a potential deal he struggles to see the "value-add" QCOM would bring to VNE from an acquisition rather than continuing the companies' current partnership on ADAS/autonomous integrated platform. "This acquisition could also potentially create other channel conflicts with other automotive tier-1 suppliers," Vinh, who has an overweight and $190 price target on Qualcomm, wrote in a note. Last week, Veoneer trades above deal price; one analyst sees possibility of competing bid.

For further details see:

Magna unlikely to be able to match Qualcomm's bid for Veoneer, analyst says