Breaking: Intel to Buy McAfee for $7.7 Billion (INTC, MFE)

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Computer processor giant Intel Corporation ( INTC ) on Thursday said it would acquire antivirus software maker McAfee ( MFE ) for $7.7 billion in cash.

The $48 per-share offer represents a 67% premium over McAfee's Wednesday closing price of $29.93. McAfee shares surged $17.45, or +58%, in premarket trading Thursday.

The Bottom Line
We had removed shares of INTC from our recommended list back on June 8, 2010, when the stock was trading at $20.31. The company has a 3.22% dividend yield, based on last night's closing stock price of $19.59. The stock has technical support in the $16-$17 price area. If the shares can firm up, we see overhead resistance around the $21-$22 price levels. We would remain on the sidelines for now.

Intel Corporation ( INTC ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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