Intel offered up to $6 billion for Israel's Mellanox: Reports

  • U.S. chipmaker Intel has bid $5.5 billion to $6 billion in cash and stock to buy Israel's Mellanox Technologies, Israeli media reported.
  • A $6 billion offer would represent a 35 percent premium to the last closing price of Mellanox on Nasdaq, the Calcalist financial news website said.
  • Officials at Intel and Mellanox declined to comment.
Eyal Waldman, President and CEO of Mellanox Technologies poses for a photograph at the company's headquarters in Yokneam, in northern Israel July 26, 2016. 
REUTERS/Ronen Zvulun
Eyal Waldman, President and CEO of Mellanox Technologies poses for a photograph at the company's headquarters in Yokneam, in northern Israel July 26, 2016. 

U.S. chipmaker Intel has bid $5.5 billion to $6 billion in cash and stock to buy Israel's Mellanox Technologies, Israeli media reported on Wednesday.

A $6 billion offer would represent a 35 percent premium to the last closing price of Mellanox on Nasdaq, the Calcalist financial news website said.

Based in Yokneam, Israel, Mellanox makes chips and other hardware for data centre servers that power cloud computing.

Officials at Intel and Mellanox declined to comment.

In October, CNBC reported that Mellanox had hired a financial adviser to explore a sale after receiving takeover interest from at least two companies.

On Monday, Israeli Finance Minister Moshe Kahlon said Intel plans to invest $11 billion to expand its manufacturing operations in southern Israel.