Noted Activist Investor Calls on Intel to Explore Strategic Alternatives
Daniel Loeb, the influential activist investor and CEO of hedge fund Third Point, is pushing for changes at chip giant Intel (NASDAQ: INTC). Loeb articulated these in a letter sent to the chairman of the company's board, Omar Ishrak, on Tuesday.
Claiming that the company is effectively ceding its once dominant position to Asia-based rivals and onetime customers like Apple, Loeb wrote that Intel's board should "evaluate strategic alternatives." Among other requests, he is urging the company to determine whether it should continue its traditional core activity of chip manufacturing and to consider jettisoning some of its recent acquisitions
Also, "From a governance point of view, we cannot fathom how the boards who presided over Intel's decline could have permitted management to fritter away the company's leading market position while simultaneously rewarding them handsomely with extravagant compensation packages," ValueWalk.com quoted Loeb as writing in the letter.
Source Fool.com
