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