Qualcomm extended its tender offer for all outstanding shares of NXP Semiconductors as it continues to work toward obtaining regulatory approval of the $38 billion deal.

There is increasing speculation that Qualcomm may have to increase its offer to acquire NXP given that NXP's stock price has risen significantly since the deal was announced in October 2016. The deal was originally supposed to close by Oct. 27 of this year.

Qualcomm said its new tender offer expires Oct. 20. The company said about 3 percent of NXP's shares have already been tendered.

The deal is still awaiting approval by European regulators. The European Commission put its investigation of the acquisition on hold in for a second time earlier this month pending submission of relevant documents from the firms.

Analysts generally believe that the deal will be approved given the complementary product offerings of the two firms. However, if the deal fails to obtain regulatory approval, Qualcomm may be on the hook for a $2 billion "breakup fee" to NXP.

By: DocMemory
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