Intel gains after report Qualcomm has approached about a takeover (update)

Update 3:50pm: Adds details from WSJ, updates shares.

Intel (NASDAQ:INTC) rose 3.3% amid a report that Qualcomm (QCOM) has approached about a takeover. Qualcomm fell 2.9%.

Qualcomm (QCOM) approached Intel (INTC) in recent days, according to a WSJ report on Friday, which cited people familiar with the matter. A deal is said to be “far from certain,” according to the WSJ report. A transaction is also likely to gain scrutiny from antitrust regulators.

In order to get a potential Intel (INTC) deal across the finish line, Qualcomm (QCOM) may intend to sell assets or parts of Intel to other possible buyers, the WSJ said.

Intel (INTC) has a market cap of $90 billion, while Qualcomm (QCOM) is valued at $194 billion.

Representatives for Intel and Qualcomm declined to comment to Bloomberg on the WSJ report.

Potential interest comes amid Intel’s (INTC) ongoing financial struggles and efforts to streamline operations, which may involve divesting certain business units. Intel shares have dropped 58% this year through Thursday.

Reuters reported earlier this month that Qualcomm (QCOM) has looked into the potential buying of Intel’s (INTC) design business as the San Diego-based mobile chipmaker attempts to improve its product line. Qualcomm has been considering various parts of Intel’s (INTC) design operations, particularly its client PC design division, which is of significant interest.

Late last month, Bloomberg reported that Intel (INTC) was exploring options such as splitting its foundry business and potentially scrapping factory projects.

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