Intel Corporation is currently going through a difficult period, as high restructuring costs and loss of market share negatively affect its profitability indicators, and this always causes dissatisfaction among shareholders. Anticipating their potential actions as a threat to its business, Intel proactively hired consultants from Morgan Stanley, CNBC reported.
Image Source: Intel
What events prompted Intel to take such a step has not yet been specified, but none of the major shareholders have put forward any initiatives that would be inconvenient to the current management of the company. The investment fund Third Point, known for its activity in this area, at the end of 2020 accumulated in its hands a large stake in Intel shares, the value of which was then estimated at $1 billion. However, by the end of 2021, this investor sold 14 million shares of Intel, and made money on these transactions I couldn’t. Nevertheless, the corporation’s management tries to foresee in advance unfavorable scenarios for the development of events.
Hostile actions from shareholder activists are just that, and it’s best to be prepared for them in advance. Last week, Lip-Bu Tan left the board of directors after less than two years on the board. The motives for his departure are related to other priorities for managing his own time, but even if some contradictions arise on the Intel board of directors, representatives of the press usually manage to find out about this only a long time later.