Intel to Buy Infineon’s Wireless Unit for $1.4 Billion (INTC)

By Dividend.com,  August 30, 2010, 08:40:41 AM EDT

Computer processor giant Intel Corporation ( INTC ) said Monday that it will buy Infineon Technologies' wireless chip unit for $1.4 billion in cash.

The move follows Intel's surprise announcement last week that it would acquire antivirus software maker McAfee for $7.68 billion. Infineon makes wireless chips for devices like laptops and mobile phones, including Apple's iPhone.

Intel CEO Paul Otellini said in a statement that "wireless connectivity continues to grow at an extraordinary rate." The deal is expected to close in the first quarter of 2011, and Intel said it will maintain the wireless unit as a standalone business.

Intel shares were mostly flat in premarket trading Monday.

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 3.43% dividend yield, based on Friday's closing stock price of $18.37. 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 The NASDAQ OMX Group, Inc.


This article appears in: Investing, Stocks

Referenced Stocks: INTC



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