Intel says ready to use hedge fund on organization focus
Intel’s shares rose sharply Tuesday following the computer chip huge said it was prepared to utilize a hedge fund on improvements to its organization to boost shareholder value.
The marketplace action came after Intel acknowledged getting a letter from Third Point, led by activist investor Daniel Loeb. Intel rose 4.9 percent to close at $49.39.
“Intel Corporation welcomes suggestions from all shareholders regarding enhanced shareholder benefit,” the California tech giant explained.
“For the reason that spirit, we look forward to engaging with Third Level LLC on the ideas towards that objective.”
Third Point’s letter said Intel should consider outsourcing its manufacturing operations to keep pace with rivals in the sector such as for example Taiwan-based TSMC and Southern Korean giant Samsung, amongst others.
“We advise the board retain a reputable investment advisor to judge strategic alternatives, including whether Intel should remain an integrated device manufacturer and the probable divestment of selected failed acquisitions,” the letter stated.
While Intel remains among the world’s leading chip firms, it has lagged behind rivals in the fast-growing segment of mobile devices, and its own chips are being eliminated by Apple, which is growing its own microprocessors for its Mac computers.
Source: www.daily-sun.com
