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.Other observers claim such a move wouldn't make much sense. More info at Reuters.
"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.
Intel to acquire NVIDIA? Or not?
Posted on Thursday, Oct 05 2006 @ 15:50 CEST by Thomas De Maesschalck