Third Point Calls on Intel to Explore Strategic Alternatives -- Update

By Asa Fitch

Activist hedge fund Third Point LLC is urging Intel Corp. to consider strategic changes after a year in which the U.S. semiconductor giant suffered new product delays and lost its rank as America's most valued chip company.

Third Point, in a Tuesday letter to Intel Chairman Omar Ishrak, said "We suggest the board retain a reputable investment advisor to evaluate strategic alternatives, including whether Intel should remain an integrated device manufacturer and the potential divestment of certain failed acquisitions."

Intel said it "welcomes input from all investors regarding enhanced shareholder value. In that spirit, we look forward to engaging with Third Point LLC on their ideas towards that goal."

Intel, which both designs and builds its own chips, this year said it would consider outsourcing the manufacture of some of its most advanced chips. The company is expected to make a decision soon on where it will make future generations of processors.

Third Point's letter said Intel also should address the recent departure of top chip designers and what it called an "increasingly demoralized" remaining engineering staff. The letter was reported earlier by Reuters.

Intel shares rose more than 5% after Third Point's letter.

Write to Asa Fitch at asa.fitch@wsj.com

(END) Dow Jones Newswires

December 29, 2020 14:03 ET (19:03 GMT)

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