Less than two days after agreeing to invest $11 billion in new Israeli semiconductor-manufacturing facilities, Intel is reported to be offering to buy Mellanox Technologies for about $6 billion. Sources said the U.S. company is offering $110 a share, a 35% premium to Mellanox’s Nasdaq closing price on Tuesday. On Wednesday, the stock was up 6% at $86.55 mid-day local time in New York. If true, Intel is the third company to be eyeing the semiconductor company. In October the CNBC television network reported that Mellanox had hired an adviser to explore a sale after receiving takeover interest. In spite of Intel’s generous valuation, Mellanox CEO Eyal Waldman is expected to seek even more, perhaps as much as $120 a share. Waldman is said to believe that the company will be enjoying five years of strong growth because it has invested so heavily in new products.
Read More … Source haaretz