Altera stock soars on report of sales talks with Intel
SAN FRANCISCO (AP) Altera's stock soared to its highest price in nearly four years Friday on a report the chipmaker is in talks to be sold to industry leader Intel.
The Wall Street Journal didn't cite any sources in its report about the negotiations and cautioned that a deal might not be consummated. Investors, though, are betting on a takeover.
Altera Corp.'s stock surged $9.81, or 28 percent, to finish at $44.39, its highest closing price since June 2011. Intel Corp.'s shares rose $1.92, or more than 6 percent, to close at $32.
Intel, based in Santa Clara, California, declined to comment Friday. Altera of San Jose, California, didn't immediately respond to requests for comment.
Altera makes chips used in phone networks and cars, two areas that Intel has been angling to get into as demand for personal computer chips slips. As the world's largest maker of PC chips, Intel has been hurt by the downturn in the sales of desktop and laptop machines as more people rely on smartphones and laptops to connect to the Internet.
If a deal comes together, it would probably be the biggest acquisition in Intel's nearly 47-year history. Altera's market value stood at $14 billion, a fraction of Intel's $151.6 billion.
Altera already has been using some of Intel's technology in the design of its chips as part of a long-term agreement reached in 2013.