Chipmaker Intel, which has been struggling to re-invent itself ever since the smartphones took over this earth, is reportedly in close talks to buy rival chip maker Altera Corp. for about $15 billion, said a source close to negotiation.
Intel might pay as much as $54 a share for Altera, marking a 15% premium over Altera’s Thursday closing price of $46.97, sources have told to NY Post.
As cited by source, the deal is likely to close by the end of this week. However, the source also noted that this news is not in its full confirmation and the deal might still fall apart.
Earlier this year, Intel signed a standstill agreement with Altera that expires on June 1. This gives Intel a chance to launch a hostile bid after that. Following months of negations, Altera had earlier rejected the $54 per share offer from Intel in April.
If the deal does go ahead, it would be the biggest acquisition for Intel and could help it move away from PC sales into faster-growing sectors like Altera’s data center programmable chips.
Currently, Intel has a valuation of $160 billion,, which is way off as compared to the chipmaker’s earlier glory days. Post this news, shares of Altera were up 9.6% in thin premarket volume on Friday.