'Overwhelming' view is Qualcomm will up offer for NXP: Morgan Stanley

There is a 'strong case'for expecting chipmakerQualcommInc to raise itsofferfor NXP Semiconductors NV,MorganStanleyanalysts wrote on Monday, saying investors they spoke to last week believed the price would rise.

The USsmartphone chipmaker hasoffered concessions in an attempt to allay EU antitrust concerns over its $38-billion bid for NXP, the largest ever in the semiconductor industry.

MorganStanley's analysts said discussions at a symposium with a groupof 40 investors last week showed sentiment "overwhelmingly" leaning toward the camp that believed thatQualcomm would raise itsofferprice.

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The brokerage has a price target of $117.5 on NXP stock, above the $110 per shareoffer Qualcommmade for the company last year.

Hedge fund Elliott Management Corp, which then had a 6 percent stake in NXP, indicated in August it was pushing for a higher price tag in NXP's pending sale toQualcomm.