Altera Shoots Higher On Reports Intel Talks Resume
The New York Post reports that Intel Corporation (NASDAQ: INTC) and Altera Corporation (NASDAQ: ALTR) resumed talks for "a $13 billion-plus buyout." The Post quoted a source that said a deal could come together "quickly." In April, Intel reportedly rejected Altera's $54 per share request.
Since the deal collapsed in April, Altera reported earnings that disappointed the Street. Shares were 6 percent higher in the premarket, last trading at $47.15.
Altera designs customizable programmable chips, primarily for data centers. Starting in 2013, Altera paid Intel to make its chips. Intel is reportedly interested in the deal to diversify outside of its PC chip-making business.
The possibility of that deal, as well as pressure from shareholders, may be behind Altera's renewed interest in a deal. Hedge fund TIG Advisors, a substantial Altera shareholder, has been outspoken in pushing for the company to re-engage with Intel.
Year-to-date, Altera is up more than 20 percent, while Intel has slid more than 9 percent. Intel's market capitalization is more than 10x Altera's, at $156.5 billion versus $13.37 billion.
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