Altera Shareholders Cadian, TIG Said to Push Sale to Intel

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The Intel Corp. booth at the CEATEC Japan 2013 exhibition in Chiba City.

The Intel Corp. booth at the CEATEC Japan 2013 exhibition in Chiba City.

Photographer: Kiyoshi Ota/Bloomberg

Cadian Capital Management and TIG Advisors are among Altera Corp. shareholders that have sent letters to the company’s management, urging them to return to the negotiating table with Intel Corp., people with knowledge of the matter said.

The letters question Altera’s ability to create enough value on its own to match Intel’s offer, said the people, who asked not to be identified because the letters are private. Several other of Altera’s largest investors also have sent letters, two of the people said. Intel bid about $54 a share for Altera, people familiar with the matter said last week.

Talks between Altera, a maker of programmable semiconductors, and the world’s largest chipmaker ended after Altera turned down Intel’s takeover proposal, people familiar with the situation told Bloomberg April 9. Altera’s stock gained in the days following the news, signaling that some investors believed a deal at that price would be attractive.

Cadian is Altera’s 11th-largest shareholder, with about 2.8 percent of outstanding shares, according to data compiled by Bloomberg. Based on Monday’s closing price of $43.86 a share, the stake is valued at about $366 million. Altera, with a market value of about $13.2 billion, is the New York-based investment firm’s largest holding, according to a year-end filing. Altera jumped as much as 6 percent in afterhours trading, to $46.49.

TIG, a New York-based investment firm, owns about 1.5 percent of Altera’s outstanding shares, one of the people said.

Analysts were projecting Altera stock would hit just $37.91 over the next 12 months. The shares were trading at about $35 a share in March, before reports that the two companies were in talks.

Chuck Mulloy, a spokesman for Intel, declined to comment. Sue Martenson, a spokeswoman for Altera, didn’t respond to requests for comment.

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