Study of INTL,
12/29/2020 – is it a good time to look at INTL because this imminent change? Worthwhile to look deep into it
Third Point Calls on Intel to Explore Strategic Alternatives
Activist hedge fund says it has taken significant stake in Intel, calls for changes to preserve U.S. edge in semiconductor industry
Activist hedge fund Third Point LLC pressed Intel Corp. to make sweeping strategic changes after a year in which the U.S. semiconductor giant suffered more product delays and lost its rank as America’s highest-valued chip company.
In a letter Tuesday to Intel Chairman Omar Ishrak, Third Point Chief Executive Daniel Loeb said Intel’s woes could threaten the U.S. tech industry and urged the chip maker to consider alternatives, including selling some of its acquisitions and splitting its design and manufacturing operations—a move that would end Intel’s long-held status as America’s leading integrated semiconductor maker.
Intel said it “welcomes input from all investors regarding enhanced shareholder value. In that spirit, we look forward to engaging with Third Point LLC on their ideas towards that goal.”
Third Point’s demands follow years of engineering struggles at Intel and growing competitive pressure from rivals that outsource their chip manufacturing to factories in Asia—including Nvidia Corp. , which surpassed Intel in market capitalization in 2020. Intel this year pushed back production of its most advanced chips, was dumped by Apple Inc. as the supplier for its Mac computer processors and lost market share to former distant rival Advanced Micro Devices Inc.
