Altera Buyout

xandman

xandman

Anybody expecting a buyout after Jun 1?

I read something about a lockup period expiring after that date. I can't find the article anymore. I would have thought it was my imagination. However, I do see a hump in the volatility curve for the Jun05 options expiration. Strange that the hump wasn't there last week. Could be a humongous short hedge.

Links to that article (or any) about a lockup would be appreciated.
 
xandman said:
Anybody expecting a buyout after Jun 1?

I read something about a lockup period expiring after that date. I can't find the article anymore. I would have thought it was my imagination. However, I do see a hump in the volatility curve for the Jun05 options expiration. Strange that the hump wasn't there last week. Could be a humongous short hedge.

Links to that article (or any) about a lockup would be appreciated.
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Nice call, June 1st, $54/share. Own any?
 
Yep. With ALTR at 52, I think I'm going to the leave the extra 2 bucks on the table.

I don't understand why the thing doesn't pin to the $54 buyout price. Time value of money? A full $2.00?
 
This is vending machine money for Intel. I don't think this is a discount for a potential fall out. And, quite the opposite of finding somebody crazy enough to make a competing bid.
 
Let me make a bold prediction as a person with a PhD in EE. I don't know whether the deal will go through or not and that is not my point. I am talking what happens after that. Many companies who are INTC competitors are using Altera parts (FPGAs/CPLDS) to implement their design and are in talk with Altera's FAE about their design and the problems that they have and many times they need to send their whole design to an FAE so he can help them. After the deal, they should have a second thought doing that. It is like they will be revealing their design and ideas to INTC. So what will happen in my opinion? Companies will flock to Xilinx as an alternative and Altera with intel will bring much much less revenue to intel. I have no position on INTC, or Altera or Xilinx but that is a good idea to buy Xilinx or short INTC. Just my 2 cents.
 
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xandman said:
Yep. With ALTR at 52, I think I'm going to the leave the extra 2 bucks on the table.

I don't understand why the thing doesn't pin to the $54 buyout price. Time value of money? A full $2.00?
More...

It's the cost of carry for 10 months + a (small) risk premium of the deal not going through.
 
ALTR volume is high because now it is a good candidate for scale or commission rebate trades since it is trading in a tight range.
 
If INTC intention was to use Altera's programmable parts in its chips, it could easily be done by licensing in much lower price. So why INTC is buying ALTR? Well Lots of cash and no idea makes you do crazy things that does not make sense.
 
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