Intel Corporation is again attracted to rich Altera Corporation’s asset

Intel Corporation is again attracted to rich Altera Corporation’s asset

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The talks between the two semiconductors giants, Intel Corporation (NASDAQ:INTC) and Altera Corporation (NASDAQ:ALTR), resumed again after failed to conclude last month due to pricing issues.

Intel is the leading chip provider in the world but its chip supplying business is highly concentrated to PC market. As the increased attention of audience towards smartphones is dragging down PC market day by day and this is putting a lot of pressure on Intel. Now the Chip maker giant wants to diversify its business for greater exposure in market. Altera Corp specializes in programmable chips used in consumer electronics, autos and other applications, a domain where Intel has zero exposure.

Representatives of both companies didn’t comment on this matter.

If Intel would be able to procure Altera Corp than it would be its largest acquisition surpassing its previous biggest acquisition of McAfee, a security software provider company, worth $7.7 billion. The current deal is expected to be valued more than $13 billion.

The earlier merger discussions between the two semiconductor giants ended in April when Intel was offering $54 for each Altera Corp share. Intel has offered a considerable amount of premium to Altera Corp’s shares at that time but Altera Corp demanded a higher price.

Even after the merger failure last month shares of Altera Corp up surged still suggesting it a potential buyer. The stock of Altera Corp gained momentum following the latest announcement.

“This is turning into a soap opera,” said Stacy Rasgon, a senior analyst at Bernstein Research.

He further aid that Intel’s partnership with the startup eASIC didn’t possibly hurdle in its desire for Altera Corp.

“It is a whole other level of programmability,” he said, referring to eASIC’s focus on chips that accelerate computer speeds.

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