Fir Tree’s Big Tobacco Buy And Other Major Moves Heading Into 2017

NXP Semiconductors NV (NASDAQ:NXPI)

– Shares Held By Fir Tree (as of December 31): 1.33 Million

– Value of Holding (as of December 31): $130.7 Million

NXP Semiconductors NV (NASDAQ:NXPI) was a new entrant to Fir Tree’s portfolio during the fourth quarter. Shares of the semiconductor manufacturer spiked by nearly 23% at the end of the third quarter amid rumors that chip giant QUALCOMM, Inc. (NASDAQ:QCOM) was in talks with the company to acquire it. Those rumors turned out to be true on October 26, when QUALCOMM agreed to acquire NXP Semiconductors NV (NASDAQ:NXPI) for $110 per share or $47 billion including debt. Though NXP’s stock is currently trading up by 5.49% year-to-date, it’s still at a considerable discount to the price being offered by QUALCOMM, suggesting uncertainty regarding the completion of the deal. Earlier this month, QUALCOMM extended the offering period for cash tender of all outstanding NXP Semiconductors shares to March 3, 2017. The tender offer remains subject to conditions laid out earlier, which includes regulatory approvals and valid tender of at least 80% of NXP’s float.

Midstates Petroleum Company, Inc. (NYSEMKT:MPO)

– Shares Held By Fir Tree (as of December 31): 6.39 Million

– Value of Holding (as of December 31): $132.6 Million

Like NXP Semiconductors, Midstates Petroleum Company, Inc. (NYSEMKT:MPO) was also a new entrant in Fir Tree’s equity portfolio during the fourth quarter. The beleaguered oil services company was delisted from the NYSE a year ago. Shortly after that, it filed for Chapter 11 bankruptcy after reaching a preliminary agreement with its lenders on terms of a $2 billion debt-for-equity swap. However, that bankruptcy was short-lived, as within five months of filing it, Midstates Petroleum Company, Inc. (NYSEMKT:MPO) emerged out of it by eliminating the $2 billion in debt and $185 million in annual interest expenses. After being re-listed on the NYSEMKT in October, MPO’s stock has mostly been range-bound.