Analysts Shoot Down Rumors of Intel Nvidia Acquisition

Includes: INTC, NVDA
by: Steven Towns

Excerpt from our One-Page Annotated News Summary:

Nvidia sparks interest but Intel seen unlikely (Reuters)

Summary: Rumors spread Wednesday that Nvidia (NASDAQ:NVDA) could be acquired by Intel (NASDAQ:INTC), sending the former's shares up 8+%. Yesterday, however, analysts said such a deal is unlikely. Nvidia's shares lost 2.8% yesterday to close at $30.20. A Merrill Lynch analyst commented, "We don't think there's a solid rationale for a deal and we don't think it's going to happen." An American Technology Research analyst was also doubtful citing Nvdia's businesses not matching Intel's core business and a 20% premium that Intel would have to pay. An Nvidia spokeswoman declined to comment. Intel Chairman Craig Barrett told Reuters, "We treat investments and things of that sort like fine wine and we never discuss them before their time, so we don't comment on rumors of that sort."
Related links: Full articleNvidia Shares Goosed By Rumors That Intel Will Buy ItNvidia Comments on How AMD's Acquisition of ATI Affects Its BusinessNvidia Threatened by AMD ATI MergerAMD, Nvidia To Be Hit By Latest Dell Weakness • Conference call transcripts: Intel Q2 2006Nvidia Q2 2007
Potentially impacted stocks and ETFs: Advanced Micro Designs (NASDAQ:AMD), which fueled the Intel-Nvidia rumor because of its earlier agreement to buy Nvidia rival ATI Technologies (ATYT); Trident Microsystems (TRID) received a delisting notice from the Nasdaq on Wednesday.

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