Editor's Note: The story has been corrected to reflect that the stand-still agreement expires June 1, not May 1 as was reported.
NEW YORK (TheStreet) -- Intel (INTC) shares are climbing 0.43% to $32.69 in early market trading on Friday following reports that the company signed a standstill agreement with fellow semiconductor company Altera (ALT) that expires June 1, at which point Intel will have the option to launch a hostile takeover bid for the company, according to Reuters.
Altera shares are up 8.66% to $45.29 in early market trading today.
Altera rejected Intel's $54 per share offer in April after the two sides had been negotiating for months, according to Reuters sources, with the Altera engaging in the talks on the condition that they would not be made public.
Acquiring Altera, which makes programmable chips widely used in cellphone towers and industrial applications and by the military, would fit into the company's previously announced plans to expand into new markets, according to Reuters.
Intel and Altera have not commented on the report.
TheStreet Ratings team rates INTEL CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate INTEL CORP (INTC) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, reasonable valuation levels and solid stock price performance. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."