Altera shares jump on talk of Intel bid

June 01 07:20 2015

Shares of computer chipmaker Altera are up Friday amid renewed speculation about an acquisition by industry giant Intel. Shares of San Jose, Ca.-based Altera were 4.34%% or $2.04 higher, at $49.01, by mid-afternoon Friday. The increase came after the New York Post, citing a source close to the situation, reported that Santa Clara, Ca.-based Intel was close to completing a $15 billion acquisition deal for its smaller rival.Employees walk up a flight of stairs pri

The Financial Times reported the deal could be announced as early as next week. Both Intel and Alterra declined to comment Friday. A wave of consolidation is washing through the chip industry. On Thursday Singapore’s Avago agreed to purchase U.S.-based Broadcom for $27 billion.

In March Freescale Semiconductor, which makes chips used in cars, agreed to a $11.8 billion cash and stock take-over by Dutch chipmaker NXP Semiconductors. If finalized, the Altera deal would be the largest ever for Intel, as the company moves from PC chip sales into fast-growing sectors such as the data center programmable chips produced by Altera, the Post reported.

Intel shares were up 1.25% by mid-afternoon, to $34.43. The rumored deal, if consummated, could break the pattern of smaller transactions pursued by Intel in the past. The company’s biggest buyout was the Aug. 19, 2010, acquisition of computer security firm McAfee for nearly $8 billion, according to S&P Capital IQ.