Lattice Semiconductor Considers Offer for Intel’s Altera Unit
(Bloomberg) -- Lattice Semiconductor Corp. is considering making an offer for all of Intel Corp.’s Altera, people familiar with the matter said, in a twist that could complicate the chip giant’s plans to sell a minority stake in the unit.
Hillsboro, Oregon-based Lattice is working with advisers and is seeking a private equity backer as it explores a potential bid, according to the people, who asked not to be identified discussing confidential information.
Buyout firms including Francisco Partners, Bain Capital and Silver Lake Management have also been studying offers to invest in Altera, the people said. Altera could also attract interest from other semiconductor companies, they added.
Any attempt by Lattice to gain control of Altera might prove difficult, given the relatively small size of the acquirer. Lattice has a market value of $7.48 billion, less than half what Intel would need to break even on the roughly $17 billion it paid for Altera in 2015.
Offers for a stake in Altera, whose multi-use chips are primarily deployed in telecommunications networks, would likely need to be highly structured, according to the people. Private equity firms are weighing investments equivalent to about $3 billion, which may come in the form of structured instruments, the people said. That could result in a valuation lower than what Intel paid for Altera, they said.
