Dan Loeb's hedge fund urges Intel to explore deal options

Activist hedge fund Third Point is pushing Intel to explore strategic alternatives, including whether it should remain an integrated devi...



Activist hedge fund Third Point is pushing Intel to explore strategic alternatives, including whether it should remain an integrated device manufacturer, according to a letter it sent to the chipmaker’s chairman on Tuesday that was reviewed by Reuters.

Third Point CEO Daniel Loeb wrote to Intel chairman Omar Ishrak calling for immediate action to boost the company’s position as a major provider of processor chips for PCs and data centers. The New York-based fund has amassed a nearly $1 billion stake in Intel, according to people familiar with the matter.

Loeb said in the letter that Intel’s most urgent task was addressing its “human capital management issue”, as many of its talented chip designers have fled, “demoralized by the status quo.”

Intel has lost its pole position in microprocessor manufacturing to Taiwan Semiconductor Manufacturing and South Korea’s Samsung Electronics, Loeb wrote in the letter.

Intel is also losing market share in its core PC and data center markets to Advanced Micro Devices, Loeb added. NVIDIA is dominating computational models used in artificial intelligence applications, while Intel has been largely absent in this nascent market, according to the letter.

“Without immediate change at Intel, we fear that America’s access to leading-edge semiconductor supply will erode, forcing the U.S. to rely more heavily on a geopolitically unstable East Asia to power everything from PCs to data centers to critical infrastructure and more,” Loeb wrote.

Intel did not immediately respond to a request for comment.

Loeb asked Intel to retain an investment advisor to evaluate strategic alternatives, according to the letter. Third Point believes that Intel should consider separating its chip design from its semiconductor fabrication plant manufacturing operations, according to the sources. This could include a joint venture in manufacturing, according to the sources.

Intel customers, such as Apple, Microsoft and Amazon, are developing their own in-house silicon solutions and sending those designs to be manufactured in East Asia, Loeb wrote. He suggested Intel must offer new solutions to retain these customers rather than have them send their manufacturing away.

Third Point, which has $15 billion in assets under management, has experience in pushing companies to pursue deals, including at Prudential, Yum! Brands, Dow Chemical and United Technologies.

Source link

COMMENTS

Name

Africa,729,Americas,3913,Art & Culture,14238,Arts,6336,Arts & Design,1527,Asia,3116,Automobile,416,Baseball,504,Basketball,402,Books,3728,Business,5169,Celebrity,2595,Cricket,607,Crime,123,Cryptocurrency,1391,Dance,589,Defense,798,Diplomatic Relations,2453,Economy,1011,Editorial,260,Education,1120,Elections,292,Energy & Environment,2990,Entertainment,22098,Environment,3471,Europe,4066,Faith & Religion,207,Family & Life,777,Fashion & Style,3088,Finance,18995,Food & Drink,3578,Football,1029,Games,75,Gossip,10247,Health & Fitness,3919,Health Care,873,Hockey,182,Home & Garden,882,Humour,952,Latin America,49,Lifestyle,16244,Media,492,Middle East,1401,Movies,1582,Music,2488,Opinion,2736,Other,11243,Other Sports,4870,Political News,11240,Political Protests,2282,Politics,17293,Real Estate,1689,Relationship,63,Retail,3071,Science,2475,Science & Tech,9495,Soccer,161,Space & Cosmos,278,Sports,11419,Technology,3271,Tennis,507,Theater,1564,Transportation,277,Travel,2440,TV,3531,US Sports,1436,Video News,3531,War & Conflict,1028,Weird News,955,World,15579,
ltr
item
Newsrust: Dan Loeb's hedge fund urges Intel to explore deal options
Dan Loeb's hedge fund urges Intel to explore deal options
https://nypost.com/wp-content/uploads/sites/2/2020/12/dan-loeb-intel.jpg?quality=90&strip=all&w=1200
Newsrust
https://www.newsrust.com/2020/12/dan-loebs-hedge-fund-urges-intel-to.html
https://www.newsrust.com/
https://www.newsrust.com/
https://www.newsrust.com/2020/12/dan-loebs-hedge-fund-urges-intel-to.html
true
732247599994189300
UTF-8
Loaded All Posts Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share to a social network STEP 2: Click the link on your social network Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy Table of Content