TSEM - Why Intel Stock Wilted on Wednesday
2023-08-16 16:47:49 ET
Intel (NASDAQ: INTC) stock took it on the chin Wednesday following the company's retreat from a deal to acquire an Israel-based peer.
The move came after the company failed, "in a timely manner," to secure regulatory approval for the $5.4 billion arrangement from regulators in China. Investors were obviously disappointed that Intel won't be bulking up with the new asset, as they traded the stock down by nearly 4% on the news.
In separate press releases, Intel and its target, chipmaker Tower Semiconductor (NASDAQ: TSEM) , announced that Intel was pulling out of the deal. This will trigger a hefty $353 million termination fee that Intel must pay to Tower, likely another reason for the negative investor reaction.
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Why Intel Stock Wilted on Wednesday