According to unnamed sources cited by Reuters, Intel and Altera have resumed negotiations that would have the larger chip maker acquiring the smaller chip maker. This deal could be finished in the next few days and may have INTC paying $54 a share for ALTR.
Intel reportedly attempted an unsolicited acquisition of Altera in April. This offer was also for $54 a share and was turned down by ALTR. A standstill agreement between the two will expire on June 1 and INTC will have the ability to launch a hostile takeover when it does, reports Reuters.
According to Sunit Rikhi, the vice president and general manager of Intel Custom Foundry, INTC and Altera already work close together in many areas. He says that they benefit from each other’s expertise and that they both “focus on building industry-disrupting products,” 24/7 Wall St. notes.
INTC shares were up 1% and ALTR shares were up 4% as of Noon Friday.