Key Takeaways
- Troubled chipmaker Intel has rejected a bid by chip designer Arm Holdings for its product division, Bloomberg reported late Thursday.
- It was the latest of several Intel-related rumors. Earlier this week, the news outlet reported that Apollo Global Management had offered to invest as much as $5 billion in Intel, days after The Wall Street Journal said that Qualcomm had made a “takeover approach” for it.
- Intel shares have lost more than half their value since the start of the year amid concerns about the chipmaker’s ability to turn around its business.
Yet another Intel (INTC) rumor is out there—this time, about a deal that appears not to be happening.
The embattled chipmaker, shares of which are down more than 50% this year, rejected a bid by chip designer Arm Holdings (ARM) for its product division, Bloomberg reported late Thursday.
Intel’s woes have attracted deal activity, as well as deal chatter. Earlier this week, the news outlet reported that Apollo Global Management had offered to invest as much as $5 billion in Intel,. Days earlier,The Wall Street Journal said that Qualcomm (QCOM) had made a “takeover approach” for the company.
Apart from its product division, which sells chips for personal computers, servers and networking equipment, Intel’s other main unit is one that operates its factories. Both Arm and Intel declined to comment.
Intel, which is struggling with high debt levels and trying to stem losses, earlier this month updated investors about its strategic plans, which include separating the chip product division from its manufacturing operations.
Intel shares finished Friday—and the week—little changed. Investor concerns that the chipmaker will struggle to turn around its business have weight on the stock this year.
American depositary receipts (ADRs) of Arm fell more than 2%.