WHEN: Today, Thursday, April 9th
WHERE: CNBC's "Squawk on the Street"
Following is the unofficial transcript of breaking news from CNBC's David Faber on CNBC's "Squawk on the Street" today. Following is a link to the video on CNBC.com: http://video.cnbc.com/gallery/?video=3000369560.
All references must be sourced to CNBC.
DAVID FABER: WE WANT TO TELL PEOPLE ABOUT THE TALKS THAT HAVE BEEN GOING ON BETWEEN INTEL AND ALTERA FIRST REPORTED BY THE WALL STREET JOURNAL BACK ON MARCH 27th, HAVE ENDED.
JIM CRAMER: YES!
FABER: IN FACT, THEY ARE – WITHOUT A DEAL. JIM SEEMS TO BE EXCITED ABOUT THAT.
CRAMER: WELL BECAUSE I KNEW IT WAS PHONY. I KNEW IT WAS JUST ANOTHER –
FABER: WELL, IT WASN'T PHONY.
CRAMER: THEY WERE TALKING BUT IT WAS JUST ANOTHER – NEVERMIND.
FABER: LET ME GIVE YOU DETAILS.
CRAMER: OK.
FABER: LET ME GIVE YOU SOME DETAILS.
CRAMER: IT JUST INFURIATES –
FABER: THE TALKS HAD ACTUALLY TAKEN PLACE OVER MONTHS AND IT WAS A MARCH 27th STORY FROM THE WALL STREET JOURNAL IN WHICH IT SAID INTEL WAS IN ADVANCED TALKS TO BUY ALTERA. THAT GOT ALTERA STOCK PRICE UP AND FRANKLY INTEL'S AS WELL. WHAT I CAN TELL YOU NOW IS INTEL HAD MADE AN OFFER IN THE LOW 50s, WHICH IS A SIGNIFICANT PREMIUM TO WHERE ALTERA WAS TRADING, AND IN FACT IS A PRICE THAT ALTERA STOCK DESPITE THAT SIGNIFICANT MOVE UP ON THE WALL STREET JOURNAL STORY NEVER REACHED. NONETHELESS, IT WAS NOT A PRICE THAT ALTERA WAS WILLING TO TAKE, ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION. AND SO WHILE THEY HAD TALKED FOR MONTHS AND THERE HAD BEEN A GOOD DEAL OF DUE DILIGENCE DONE ON INTEL'S PART, THEY WERE UNABLE TO EVER AGREE ON PRICE. THEY HAVE NOT SPOKEN FOR THE LAST WEEK. ESSENTIALLY, INTEL HAS ABANDONED ANY ATTEMPTS AT THIS POINT TO ACQUIRE ALTERA. OF COURSE, WHEN THE STORY WAS REPORTED BY THE WALL STREET JOURNAL, IT WAS GREETED POSITIVELY BY SHAREHOLDERS ON BOTH SIDES. ALTERA IS ONE OF INTEL'S FOUNDRY'S BIGGEST CUSTOMERS AND IT CERTAINLY INDICATES – AND THIS IS SOMETHING THAT WILL CONTINUE, ACCORDING TO MY SOURCES – A WILLINGNESS ON THE PART OF INTEL TO CONSIDER LARGE ACQUISITIONS UNDER ITS RELATIVELY NEW MANAGEMENT. THIS WAS NOT A DEAL THAT INVOLVED A GREAT DEAL OF COST SYNERGIES, BUT WAS MORE ABOUT GROWTH. ALTERA IS A FASTER GROWING COMPANY. BUT THEY SIMPLY COULD NOT AGREE ON PRICE. I HAVE NOT BEEN ABLE TO DETERMINE THE PRICE WHICH AT LEAST ALTERA WOULD HAVE FELT LIKE IT WAS WILLING TO SELL ITSELF. THAT MAY HAVE BEEN AS HIGH AS 60 OR ABOVE AND INTEL SIMPLY UNWILLING TO GO TO THAT LEVEL AGAIN. MY SOURCES INDICATING IT WAS IN THE LOW 50s IN TERMS OF ITS OFFER PRICE. COULD NOT AGREE. THE TWO SIDES HAVE NOT SPOKEN. I AM TOLD, FOR THE LAST WEEK. AND THERE HAVE BEEN NO TALKS, THERE ARE NO PLANS TO BEGIN TALKS AGAIN. ALTHOUGH ONE ALWAYS WONDERS, JIM, WHETHER SHAREHOLDERS HEAR A REPORT LIKE THIS AND THEN SAY, COME ON, REALLY, YOU'RE NOT GOING TO ACTUALLY GET INVOLVED?
About CNBC:
With CNBC in the U.S., CNBC in Asia Pacific, CNBC in Europe, Middle East and Africa, CNBC World and CNBC HD , CNBC is the recognized world leader in business news and provides real-time financial market coverage and business information to approximately 371 million homes worldwide, including more than 100 million households in the United States and Canada. CNBC also provides daily business updates to 400 million households across China. The network's 15 live hours a day of business programming in North America (weekdays from 4:00 a.m. - 7:00 p.m. ET) is produced at CNBC's global headquarters in Englewood Cliffs, N.J., and includes reports from CNBC News bureaus worldwide. CNBC at night features a mix of new reality programming, CNBC's highly successful series produced exclusively for CNBC and a number of distinctive in-house documentaries.
CNBC also has a vast portfolio of digital products which deliver real-time financial market news and information across a variety of platforms. These include CNBC.com, the online destination for global business; CNBC PRO, the premium, integrated desktop/mobile service that provides real-time global market data and live access to CNBC global programming; and a suite of CNBC Mobile products including the CNBC Real-Time iPhone and iPad Apps.
Members of the media can receive more information about CNBC and its programming on the NBC Universal Media Village Web site at http://www.nbcumv.com/mediavillage/networks/cnbc/.