Intel may acquire smaller chip Altera for $15 billion: reports

29 May 2015

1

Intel is in talks to acquiring smaller rival Altera for about $15 billion, the New York Post reported, citing a source close to the deal.

It said Intel could pay as much as $54 a share - a 15 per cent premium over Altera's closing price yesterday of $46.97.

If the deal were to be finally clinched it would be the biggest acquisition for $160-billion-market-cap Intel, helping it move away from PC sales into faster-growing sectors like Altera's data centre programmable chips.

According to a CNBC report earlier this month, the two companies had resumed talks about a possible deal, after negotiations in April, failed.

If the talks proceed, a deal would be likely by the end of next week.

Meanwhile, Reuters reported that Intel had signed a standstill agreement earlier this year with Altera that expires on 1 June, giving the world's largest chip maker the option to launch a hostile bid after that.

In April, Altera rejected an unsolicited $54 per share offer from Intel following months of negotiations, the sources told Reuters.

However the talks were revived in May (See: Intel Corp, Altera Corp resume buyout talks).

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