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Intel Close to Deal to Buy Altera for $16 Billion

Earlier talks between the chip makers fizzled in April.

Nick Knupffer / IntelPR

Intel has resumed negotiations to buy smaller chip maker Altera and is close to a $16 billion acquisition agreement, people familiar with the matter said on Friday.

The price for Altera could be as much as $54 per share, a 15 percent premium over its Thursday closing price of $46.97. That would value Altera at more than $16 billion, according to one of the people.

Altera shares were up 4.6 percent at $49.15 during Friday midday trading in New York.

The deal could be reached in the coming days, the sources said, cautioning that no agreement was certain and asking not to be identified because the negotiations are confidential. Intel and Altera did not respond to requests for comment.

In April, Altera rejected an unsolicited $54 per share offer from Intel following months of negotiations, sources told Reuters at the time.

Earlier this year, Intel signed a standstill agreement with Altera that expires on June 1, giving the world’s largest chipmaker the option to launch a hostile bid after that, Reuters reported in April.

Avago Technologies agreed on Thursday to buy Broadcom for $37 billion, in the largest merger of chip makers ever.

The New York Post first reported late Thursday that Intel and Altera had restarted talks.

(Reporting by Greg Roumeliotis and Liana B. Baker; additional reporting by Subrat Patnaik and Rishika Sadam in Bangalore; Editing by David Gregorio)

This article originally appeared on Recode.net.

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