Intel, Altera end takeover talks due to price disagreement

Fortune

Discussions on a takeover by [f500link]Intel[/f500link] [fortune-stock symbol= »INTC »] of smaller chip maker Altera have ended as the companies were unable to agree on price, a person familiar with the matter said, but Altera shares rose, suggesting it is still a potential target.

Altera’s shares closed up 3.2% at $43.33 on the Nasdaq after earlier falling as much as 8%. Intel shares closed down slightly at $31.24 after dropping earlier in the day.

Intel’s offer was in the neighborhood of the low-$50 per share range, CNBC reported earlier on Thursday. That represented a 50% premium to Altera’s price before news of the talks was first reported on March 27.

Intel declined comment. Altera did not immediately respond to requests for comment.

Altera’s apparent refusal to do a deal puts pressure on its board, said RBC Capital Markets analyst Doug Freedman.

« Investors are going to demand some explanations, » he said. « If the…

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