Intel Says Prepared to Work With Third Point Hedge Fund on Business Focus

Third Point said Intel should consider outsourcing its manufacturing operations to keep pace with rivals.

By Agence France-Presse | Updated: 30 December 2020 09:54 IST

Intel Says Prepared to Work With Third Point Hedge Fund on Business Focus

The market action came after Intel acknowledged receiving a letter from Third Point

Highlights

Intel rose 4.9 percent to close at $49.39 (roughly Rs. 3,600)
Intel remains one of the world's leading chip companies
It has lagged behind rivals in the fast-growing segment of mobile devices

Intel's shares rose sharply Tuesday after the computer chip giant said it was prepared to work with a hedge fund on changes to its business to boost shareholder value.

The market action came after Intel acknowledged receiving a letter from Third Point, led by activist investor Daniel Loeb. Intel rose 4.9 percent to close at $49.39 (roughly Rs. 3,600).

"Intel Corporation welcomes input from all investors regarding enhanced shareholder value," the California tech giant said.

Samsung Wins Patent for a Tri-Fold Smartphone With Specialised Barrier Layer for Improved Durability

"In that spirit, we look forward to engaging with Third Point on their ideas towards that goal."

Third Point's letter said Intel should consider outsourcing its manufacturing operations to keep pace with rivals in the sector such as Taiwan-based TSMC and South Korean giant Samsung, among others.

"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," the letter stated.

The Most Exciting PC News of 2020 for Gamers and Enthusiasts

While Intel remains one of the world's leading chip companies, it has lagged behind rivals in the fast-growing segment of mobile devices, and its chips are being phased out by Apple, which is developing its own microprocessors for its Mac computers.

Is Mi QLED TV 4K the best affordable smart TV for enthusiasts? We discussed this on Orbital, our weekly technology podcast, which you can subscribe to via Apple Podcasts, Google Podcasts, or RSS, download the episode, or just hit the play button below.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.