Intel / Wind River: Another Player Throwing Its Hat into the Ring?

 |  Includes: IBM, INTC, MSFT, TXN, WIND
by: The Deal Economy

Intel Corp. (NASDAQ:INTC) agreed Thursday to acquire Wind River Systems Inc. (NASDAQ:WIND), a maker of software optimization technology, for nearly $884 million. Now there is chatter from Blogging Stocks and 24/7 Wall Street that the offer may not be enough to stem a rival bidder from offering more.

The $11.50 per share deal for the Alameda, Calif.-based target represents a premium of nearly 43.8% to Wind River's close Wednesday of $8. Prompting speculation about opportunities for rival bidders is that the target's shares are off a 52-week high in August of $12.99 and up from a 52-week low in March of $5.61.

24/7 Wall Street wrote about the deal:

"The list of companies which could be possible competing buyers are probably too many to note, but Microsoft Corp. (NASDAQ: MSFT) is sort of a loose candidate, but IBM (NYSE: IBM) and Texas Instruments (NYSE: TXN) immediately come to mind as being able to easily integrate this company."

If anyone were to swoop in and try to beat Intel, the circumstance would resemble what is facing Data Domain Inc. (NASDAQ:DDUP), which May 20 received a $1.5 billion offer from NetApp Inc. (NASDAQ:NTAP), then Monday received a competing $1.9 billion bid from EMC Corp. (NYSE:EMC). NetApp met EMC's offer, and Data Domain has accepted it. Even if the Wind River plot begins to resemble Data Domain's script, then Intel can take comfort in knowing the target is likely to prefer the initial bidder. - Matthew Wurtzel