Intel's (INTC, Financial) shares declined recently following reports of the company's efforts to secure substantial external investment for its Altera programmable chip subsidiary. Reports indicate that Intel aims to sell a minority stake in the Altera subsidiary, with an estimated valuation of $17 billion.
Having acquired Altera for $16.7 billion in 2015, Intel launched it as an independent entity in February of the same year with plans to spin it off through an initial public offering (IPO). The company has not yet responded to media inquiries regarding these developments.
In its continuing efforts to bolster its financial standing, Intel has been exploring the sale of its various subsidiaries, though with limited success. This year, Intel's market capitalization has dropped by more than half. Intel reportedly reached out to several private equity firms and strategic investors about selling Altera's stake and even discussed the possibility of allowing these investors to hold a majority stake.
