Computer processor giant Intel Corporation (
) 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 (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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, as well as a detailed explanation of
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