Intel to acquire NVIDIA? Or not?

Posted on Thursday, Oct 05 2006 @ 15:50 CEST by Thomas De Maesschalck
Speculation that NVIDIA may be acquired by Intel resulted in a 8 percent climb of NVIDIA's shares on Wednesday.
Investors have been speculating that Nvidia might be acquired since July, when Advanced Micro Devices Inc. (AMD.N: Quote, Profile, Research) agreed to buy Nvidia rival ATI Technologies Inc. (ATYT.OQ: Quote, Profile, Research) for $5.4 billion. Rumors of such a transaction resurfaced on Wednesday, spreading quickly across Wall Street trading desks, according to three options market participants.

"There is speculation that Intel will make an acquisition announcement tonight," said Bill Lefkowitz, options strategist at brokerage firm vFinance Investments in New York.

Investors bought up call options contracts, hoping to profit from a surge in Nvidia shares if the company is acquired at a premium to its current share price.
Other observers claim such a move wouldn't make much sense. More info at Reuters.


About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.



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