US tech giant Intel Corp. has made a bid of $5 billion to $6 billion in a cash and stock deal for Israel’s Mellanox Technologies Ltd., a maker of servers and storage switching solutions, according to Hebrew-language press reports.
The bid represents a 30 percent premium on Mellanox’s closing price on Nasdaq last night, financial website Globes said.
In 2017, New York activist investor Starboard Value LP acquired a 10.7 percent stake in Mellanox in a bid to improve its performance and push it to explore a potential sale.
Mellanox shares, which are traded on the Nasdaq, have advanced 24% in the past 12 months, bringing its market value to some $4.37 billion.
An Intel spokesman in Israel declined to comment on the reports about Mellanox. A Mellanox spokesman declined to comment.
Finance Minister Moshe Kahlon confirmed Tuesday that Intel will receive a $1 billion grant in return for making an $11 billion investment to expand its chip manufacturing operations in the country.