Washington
Intel’s shares rose sharply after the computer chip giant said it was prepared to work with a hedge fund on changes to its business to boost shareholder value. 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 LLC on their ideas towards that goal.”
The letter, according to media reports including CNBC and the Wall Street Journal, said Intel should consider outsourcing its manufacturing operations to keep pace with rivals in the sector such as Taiwan-based TSMC.—AFP
