After Intel (INTC) announced it has entered into a definitive agreement to sell 51% of Altera, its programmable chip business, to Silver Lake in a transaction that values Altera at $8.75B, BofA noted that this valuation is about half the $16.7B price Intel paid to purchase the business in 2015. The transaction is in-line with CEO Lip-Bu Tan’s commitment to prioritize the core x86 business and a “small step toward the right direction,” says BofA, which maintains a Neutral rating and $25 price target on Intel shares.
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