Third Point Calls on Intel to Explore Strategic Alternatives -- Update
December 29 2020 - 2:18PM
Dow Jones News
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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