Shares in Altera shot up nearly 6 percent Monday after a report that the Silicon Valley chip company has resumed merger talks with Intel.
The New York Post quoted an unnamed source with direct knowledge of the talks as saying a deal for Intel to acquire Altera could come together in a few weeks.
Intel broke off negotiations in April when Altera spurned a $54 a share offer. Altera closed at $44.15 on Friday, but traded at $47.06 Monday morning. Intel declined to comment. Altera could not be reached for comment.
Altera, based in San Jose, makes a type of chip called a field programmable gate array, or FPGA, that can be reprogrammed by users. FPGAs are seeing increasing use in server farms, where Intel s processor chips dominate.
Altera also has some of its chips made at Intel chip factories, and some analysts saw acquiring Altera as a way for Intel to keep its production lines full at a time of declining PC sales.
Intel has had to revise its estimates for the year following a slump in PC sales. The Santa Clara company s revenue comes largely from chips for PCs and servers, although it has been trying to diversify with offerings in the emerging internet of things.
Intel shares were up less than 1 percent to $33.16.
Photo: Intel headquarters (Photo courtesy Intel)
