Important points
Struggling semiconductor maker Intel has rejected a bid from chip designer Arm Holdings Inc. for its product division, Bloomberg reported late Thursday. This was the latest in Intel-related rumors. Earlier this week, news outlets reported that Apollo Global Management offered to invest as much as $5 billion in Intel, days after the Wall Street Journal reported that Qualcomm had made an “acquisition approach” to the company. Intel’s stock has soared in value since the start of the year amid concerns about the chipmaker’s ability to rebuild its business after losing more than half its value.
Yet another Intel (INTC) rumor is circulating. This time it’s about a deal that doesn’t seem to have materialized.
Bloomberg reported late Thursday that the beleaguered chipmaker, whose stock has fallen more than 50% this year, rejected a bid by chip designer Arm Holdings Inc. (ARM) for its product division.
Intel’s woes have sparked not just trade chatter, but trade activity. Earlier this week, news outlets reported that Apollo Global Management had offered to invest up to $5 billion in Intel. A few days earlier, the Wall Street Journal reported that Qualcomm (QCOM) had made an “acquisition approach” to the company.
Apart from its product division, which sells chips for personal computers, servers, and networking equipment, Intel’s other major division is its factory operations division. Both Arm and Intel declined to comment.
Intel, struggling with high levels of debt and trying to stem losses, earlier this month updated investors on its strategic plans, which include separating its chip products division from its manufacturing operations.
Intel stock ended Friday with little change this week. Investor concerns that chip makers will struggle to rebuild their businesses have weighed on stock prices this year.
Arm’s American Depositary Receipts (ADRs) fell more than 2%.
