Third Point Wants To Address ‘Substantial Problems’ At Intel
Third Point LLC is urging Intel to consider selling its manufacturing operations and “failed acquisitions” to address what the New York-based hedge fund is calling “substantial problems.”
Daniel Loeb, CEO and founder of Third Point, made the recommendations in a Tuesday letter, which was addressed to Omar Ishrak, chairman of Intel’s board, and includes a scathing critique of the chipmaker’s leadership and its manufacturing capabilities. Third Point, which provided the letter to CRN, has taken a “significant stake” in the Santa Clara, Calif.-based chipmaker and plans to acquire more shares to push for change, Loeb said.
Intel, in a brief statement posted to its website, said it “welcomes input from all investors regarding enhanced shareholder value.” The company added: “In that spirit, we look forward to engaging with Third Point LLC on their ideas towards that goal.”
What follows are five big statements Loeb made in his letter to Intel’s board, including his concerns about the company’s ability to retain top talent and big customers like Apple.