shares caught a bid in Tuesday’s trading after news emerged that activist investor Daniel Loeb of Third Point had acquired a significant stake in the chip maker and was pushing it to explore strategic alternatives.
Shares were up as much as 5.7% in afternoon trading after Reuters reported that Loeb’s hedge fund has a nearly $1 billion stake in the $200 billion company.
(DIS) to focus more on its streaming platform and permanently suspend its dividend, is urging Intel (ticker: INTC) to hire an investment adviser to help the chip maker determine if it should remain an integrated device manufacturer and if it should divest some of its recent acquisitions.
In a statement Tuesday, Intel said that it “welcomes input from all investors regarding enhanced shareholder value” and that it looked forward to engaging with Third Point.
Intel’s decline presents a national security concern, Loeb wrote in a letter to Omar Ishrak, the chairman of the board of Intel.
“Without immediate change at Intel, we fear that America’s access to leading-edge semiconductor supply will erode, forcing the U.S. to rely more heavily on a geopolitically unstable East Asia to power everything from PCs to data centers to critical infrastructure and more,” Loeb wrote.
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