Intel may open Altera hostilities

Intel's Gordon Moore and Robert NoyceA report said that after merger talks broke down earlier this year between Intel and Altera, there’s a strong possibility that the chip giant may make a hostile bid for the much smaller semiconductor company.

According to Reuters, Altera told Intel to take a hike in April after Intel offered to buy its shares at $54 a throw.

But an agreement between Altera and Intel means that at the end of May the Santa Clara behemoth could make a hostile bid.

Altera, which was formerly a part of AMD years ago, produces programmable wireless chips and it is thought Intel wants to take it over because weakness in the PC market means it has to diversify its business.

Altera is under pressure from investors to strike a deal with Intel, but the board of directors don’t want that to happen at that price.