“The Infineon unit makes chips used in mobile phones and laptops, including Apple Inc.’s popular iPhone,” Lagorce and Daniel report. “The acquisition — the second for Intel within two weeks — will bolster its position in the market for smartphone chips, enabling it to offer ‘the full range of wireless options, from Wi-Fi and 3G to WiMAX and LTE,’ Intel Chief Executive Paul Otellini said in a statement.”
“The deal with Infineon propels Intel at the forefront of the recent surge in M&A activity. Earlier this month, it announced a $7.7 billion offer for computer-security expert McAfee Inc.,” Lagorce and Daniel report. “For Infineon, the sale of its mobile unit is a chance to refocus on its core lines: automotive, industrial and multimarket, and chip card and security fields, Chief Executive Peter Bauer said.”
Lagorce and Daniel report., “Investors gave the deal a frosty reception on Monday, sending shares of Infineon down 2% in midday trade on Xetra in Frankfurt.”
Full article here.
MacDailyNews Note: In pre-market trading, shares of Intel (INTC) are down slightly, off $-0.11 (-0.60%) to $18.26 at 8:52AM EDT.