Intel Corp. (NASDAQ:INTC) dominates the semiconductor business for personal computers, and over the last decade or so it has been trying to expand its horizon outside its bread-and-butter market. Moving in that direction Thursday, the Santa Clara, Calif.-based company added software vendor Wind River Systems Inc. (NASDAQ:WIND) for $884 million. The deal sent shares of Wind River soaring while Intel finished strong as well. Overall, the Nasdaq closed up 24.10, or 1.32%, to 1,850.02. The Dow moved up 74.96, or 0.86%, to 8,750.24.
Wind River was the second-highest advancing stock on the Nasdaq behind Novax Inc. (NASDAQ:NVAX), closing up $3.76, or 47%, to $11.76. The Deal's Carolyn Murphy writes the addition for Intel will help it to expand "its processor and software presence outside the traditional PC and server market segments into embedded systems and mobile hand-held devices." With the growing popularity of smartphones such as the i-phone, the acquisition could wind up a bonanza for Intel.
But the deal is far from over, as The Deal's Matthew Wurtzel writes that Intel could end up in a bidding war for Wind River similar to one facing Data Domain Inc. (NASDAQ:DDUP), which on May 20 received a $1.5 billion offer from NetApp Inc. (NASDAQ:NTAP). On Monday, it received a competing $1.9 billion bid from EMC Corp. (NYSE:EMC).
In other deal-related stocks, shares of real estate lender Corus Bankshares Inc. (NASDAQ:CORS) jumped 6 cents, or 16.22%, to 43 cents as it announced the hiring of Bank of America Corp. (NYSE:BAC) to raise capital or sell the company.
Meanwhile, UAL Corp. (NASDAQ:UAUA) finished down 17 cents, or 3.21%, to $5.12 as its unit United Airlines Inc. is looking to open its wallet to possibly purchase 150 new aircrafts. The news is a sign that the airline might be on more stable financial footing and making an about-face in strategy as industry consultant Scott Hamilton wrote on his blog that United "CEO Glenn Tilton has previously shown zero inclination to invest in United, preferring to shop the airline for a merger." - Gerald Magpily
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