Intel (INTC, Financial) is progressing with the sale of its subsidiary, Altera, a company specializing in low-power programmable chip design. The sale has attracted interest from several private equity firms and semiconductor manufacturers. Notable bidders include Francisco Partners, Silver Lake Management, and Lattice Semiconductor (LSCC), who have entered the second round of bidding. Apollo Global Management and Bain Capital are also actively pursuing the acquisition.
Intel plans to provide formal offers to bidders by the end of January. However, the deal could still face challenges due to new bidders or transaction failures. The sale was initiated by former CEO Pat Gelsinger and has faced some criticism, yet Intel remains committed to its announced plans.
After receiving initial bids before Thanksgiving, Intel is considering various deal structures, including selling 20% to 30% of Altera or full control, with valuations ranging from $9 billion to $12 billion. Intel originally acquired Altera for approximately $17 billion in 2015.
