Stock Alert : Intel Corporation (NASDAQ: INTC) buys McAfee at 60 percent premium for $48.

Intel Corporation (NASDAQ: INTC) shares closed at $18.90 down 69 cents or 3.52% from Wednesday’s closing price of $19.59. The company’s shares have 52-week trading range of $18.31 - $24.37. The daily average volume of the stock is 68.93 million shares. The company has 50 day moving average of $20.46 and 200 day moving average of $20.61. The RSI of the stock is 32.07, showing an oversold position. The sustenance and resistance levels of Intel Corp. are $18.31 and $19.82. The Market Capitalization of the company is $105.24 billion.

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Intel Corp. acquired McAfee for a consideration of $7.68 billion. This was the largest takeover of the company. The shareholders of McAfee will get a price of $48 that is a premium of 60% over the closing price of the stock before the acquisition was announced. McAfee will help the company to get security feature laden semiconductors into smart-phones, cars and televisions. With the increase in mobile usability like a computer and other products like an iPad to come up in the near future, there would be greater demand for security requirement to prevent the devices from virus attacks. Still, when it comes to smart-phones and other devices like iPad, there is very little evidence of virus attacks and security threats as compared to computers and Laptops.

Intel Corp. generates more than 90 percent of its revenues from their semiconductor business. Integrating security of McAfee into its semiconductors will help machines to perform much efficiently.

Paul Otellini, Chief Executive Officer, Intel Corp. said in a conference call that “Software can run more quickly when it’s woven directly into a chip and doesn’t have to go through other programs; it also makes it harder for hackers to circumvent. The number of new security threats identified every month continues to rise. We have concluded that security has now become the third pillar of computing, joining energy-efficient performance and Internet connectivity in importance.”

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Intel however would require educating the consumers about the need of security in non-PC electronics.

Intel Corporation, designs, manufactures and sells semiconductor chip for computers. The major products of the company are chipsets, microprocessors, embedded processors and microcontrollers, flash memory graphics products, products, network and communications products, conferencing products, systems management software, and digital imaging products.  The company operates in nine operating segments: PC Client Group, Embedded and Communications Group, Data Centre Group, Digital Home Group, NAND Solutions Group, Ultra-Mobility Group, Software and Services Group, Wind River Software Group and Digital Health Group.

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