Altera Shareholders Cadian, TIG Said to Push Sale to Intel; What's The Street Saying Before Earnings?

Altera Corporation ALTR shareholders, including Cadian Capital Management and TIG Advisors, have urged the company’s management to consider re-opening merger negotiations with Intel Corporation INTC, according to a Bloomberg report.

According to sources, letters from shareholders question the ability of Altera to create value that exceeds Intel’s offer of $54 per share for the company.

With approximately 2.8 percent of Altera's outstanding shares, Cadian is the company's 11th-largest shareholder, according to Bloomberg, with a stake valued at about $366 million.

TIG Advisors owns about 1.5 percent of Altera’s outstanding shares, according to sources speaking to Bloomberg.

Wall Street analysts have commented on the proposed deal over the past few weeks.

Raymond James' Hans Mosesmann felt the that the deal was still in play because Altera’s board may get pressure from shareholders, which appeared to be the case following the Bloomberg report.

The Raymond James analysts also thought that Altera might be seeking a higher multiple from Intel.


Citi's Christopher Danely, however, felt that Altera was "throwing away the golden ticket," as it had "a long history of over-estimating its growth potential," when it rejected Intel’s offer.

From another perspective, FBR Capital Markets suggested why Altera might try to hold out for a $60 per share price from Intel.

Finally, Alex Gauna from JMP Securities felt that the deal would make sense for Intel and highlighted that the two companies were already in a partnership.

Intel Corporation recently traded at $31.66, down 0.22 percent.

Altera Corporation recently traded at $43.30, down 1.28 percent.