Intel Corp has reportedly hired Morgan Stanley to help it defend against potential activist investors, according to sources familiar with the matter.
The move comes as the semiconductor giant faces increasing pressure from shareholders to improve its performance and address ongoing challenges in its business. Activist investors typically take a significant stake in a company and push for changes in strategy or management in order to boost shareholder value.
Intel has been struggling in recent years as it faces stiff competition in the semiconductor industry and grapples with delays in its chip manufacturing process. The company’s stock price has also lagged behind its competitors, prompting some investors to call for action to address the company’s underperformance.
By hiring Morgan Stanley, Intel is signaling that it is taking the threat of activist investors seriously and is actively working to defend against any potential challenges to its leadership. The investment bank is known for its expertise in advising companies on how to navigate activist campaigns and shareholder activism.
Intel’s decision to enlist the help of Morgan Stanley comes at a critical time for the company, as it seeks to regain its footing and address the concerns of shareholders. The semiconductor industry is rapidly evolving, with new technologies and competitors emerging at a rapid pace. In order to remain competitive, Intel must be able to adapt and innovate in order to stay ahead of the curve.
While it is unclear what specific actions Intel may take in response to potential activist pressure, the hiring of Morgan Stanley suggests that the company is prepared to take a proactive approach to defending its business and leadership. By seeking outside advice and expertise, Intel is signaling that it is willing to listen to the concerns of shareholders and take action to address any issues that may be hindering its performance.
Overall, Intel’s decision to hire Morgan Stanley to help defend against activists is a clear sign that the company is taking the threat of shareholder activism seriously. As the semiconductor industry continues to evolve, it will be crucial for Intel to effectively address the concerns of shareholders and take steps to improve its performance in order to remain competitive in the market.