Intel rejected Arm's approach to buy product unit- Per Reports

Arm Holdings Plc (NASDAQ: ARM) approached Intel Corp (NASDAQ: INTC). to explore the possibility of acquiring its struggling product division, but Intel responded that the unit was not up for sale, Bloomberg News reported on Friday, citing a source with direct knowledge of the matter.

The source, who requested anonymity due to the confidential nature of the discussions, said that Arm was not interested in Intel’s manufacturing operations.

Arm shares were down 1.4% in premarket Friday trading, while Intel slipped 0.8%.

Intel is split into two key divisions: a product group that develops chips for PCs, servers, and networking equipment, and a second division that manages its factories.

Once the world’s leading chipmaker, Intel has faced takeover speculation following a sharp decline in its business performance this year.

The company recently reported disappointing earnings, resulting in the steepest decline in its share price in decades.

Along with cutting 15,000 jobs to reduce costs, scaling back factory expansion, and suspending its long-standing dividend.

As part of its restructuring efforts, Intel is separating its chip product division from its manufacturing operations.

This move is designed to attract external customers and investors, but it also paves the way for a potential company split, according to a Bloomberg report from last month.

Arm, majority-owned by Japan's SoftBank Group Corp. (TYO:9984), generates most of its revenue from licensing chip designs for smartphones.

However, CEO Rene Haas has been working to expand Arm's presence beyond that market, particularly in the PC and server sectors, where it competes directly with Intel.

Although Intel has lost some of its technological advantage, it still dominates these markets.

A potential partnership with Intel would expand Arm’s market reach and boost its move toward selling more complete products.

Currently, Arm licenses its designs to other companies, which then build the final components. Arm's clients include major technology companies like Amazon (NASDAQ: AMZN), Qualcomm (NASDAQ: QCOM), and Samsung (KS:005930).

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Litchfield Hills Research Initiates a Buy Rating on Immuron Limited (NASDAQ: IMRN)

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Litchfield Hills Research, LHR, yesterday initiated a Buy rating on Immuron Limited (NASDAQ: IMRN) with a price target of $5.00.

?In the report analyst Sally Yanchus stated, “We believe IMRN is undervalued, and we support that belief with a series of valuation techniques. Our 12-month price target of $5.00 is based on a discounted earnings model. For valuation purposes, we sum up all future earnings discounted at 14%, which we believe is large enough to more than compensate for the risk. We assume approximately 50% EPS near-term growth for earnings which steps down to GDP after 5-7 years.”

?The research report can be found on FactSet, Refinitiv, Capital IQ, Alpha Sense, Zacks, Nasdaq, and NYSE Connect.