Jim Cramer says shareholders should oppose management in the boardroom battle at Arconic (ARNC) and instead vote for a slate of candidates put forward by activist firm Elliott Management. He also says investors should vote down a proposed $38.5 billion takeover bid from Qualcomm (QCOM) for NXP Semiconductors (NXPI) because it's too low.
Qualcomm announced the $110-a-share bid last fall, but has had to extend its tender offer several times as it tries to accumulate enough shares to complete the deal. Cramer told a conference call for members of his Action Alerts PLUS investors club that "we think it is worth much more than Qualcomm's $110 bid. So we want to see what will happen."
Cramer's charitable trust owns NXPI, but he said the trust is "holding back tendering our NXP Semiconductors stock for the Qualcomm bid, and we're not going to sell any more."
As for Arconic, which Cramer's trust also owns, the stock picker says he "urges you to side against management."
Cramer and his AAP team wrote in a note to club members earlier this month that Elliott Management's four board candidates offer a combined 80 years of industry experience. "We believe it is time to give the activists' nominees a chance to spark new life into this company and infuse their much-needed industry experience into the culture of Arconic," the note said.
Want to join in on Jim's monthly conference calls? Click here for a free 14-day trial subscription to Action Alerts PLUS and hear all of this month's call, plus get e-mails before Jim makes any trade and enjoy lots of other exclusive material.
Editors' pick: Originally published May 19.