Market Overview

Third Point Urges Intel To Explore Strategic Alternatives: Report

Share:
Third Point Urges Intel To Explore Strategic Alternatives: Report

Intel Corporation (NASDAQ: INTC) is being pushed by activist hedge fund Third Point LLC to explore "strategic alternatives," according to a Reuters report, citing a letter Third Point sent to the tech company’s chairman.

What Happened: Third Point CEO Daniel Loeb wrote to Intel’s chairman Omar Ishrak requesting "immediate action" to boost the company’s position as a provider of processor chips for PCs and data centers.

The changes could lead to a major shakeup at Intel.

“Intel welcomes input from all investors regarding enhanced shareholder value. In that spirit, we look forward to engaging with Third Point LLC on their ideas towards that goal,” Intel said in a statement to Reuters. 

Why It Matters: Intel customers like Microsoft Corp (NASDAQ: MSFT) are designing in-house processors for server computers running on the company’s cloud services, a development that will reduce reliance on Intel’s chip technology.

The company is under pressure to remain competitive as its clients take business in-house.

INTC Price Action: Intel shares gained 4.93% Tuesday to end the session at $49.39. 

The stock has a 52-week high of $69.29 and a 52-week low of $43.63.

Related Link: Chip Stocks Fall On Report Microsoft Will Take Things In House

 

Related Articles (INTC)

View Comments and Join the Discussion!

Posted-In: Dan Loeb Reuters third pointNews Tech Media Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com