NEW YORK (TheStreet) -- Shares of Intel Corp (INTC) were down 1.63% to $33.90 on heavy volume in afternoon trading Monday, following the company's announcement that it is acquiring chip maker Altera Corp (ALTR) for $54 per share, valuing the deal at roughly $16.7 billion.
The acquisition would help Intel defend a crucial semiconductor business, according to The Wall Street Journal.
Altera previously turned down Intel's $54 per share unsolicited offer in April, The Journal noted.
Shares of Altera were jumping 6% to $51.78 on heavy volume today.
About 31.53 million shares of Intel exchanged hands as of 2:07 p.m. ET today, compared to its average trading volume of about 24.53 million shares a day.
Santa Clara, Calif.-based Intel designs and manufactures integrated digital technology platforms, consisting of a microprocessor and chipset.
Separately, 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 several positive factors, 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."