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Mellanox Technologies Ltd. (MLNX) - Get Mellanox Technologies, Ltd. Report soared nearly 8% to $88.01 on Wednesday as Intel Corp. (INTC) - Get Intel Corporation Report reportedly placed a bid to acquire the Israeli big data connectivity company, according to Globes

Intel's bid of about $5.5 to $5.6 billion represents a 30% premium on Mellanox's closing price on Tuesday of $81.67. The Times of Israel reported the bid was closer to a $6 billion cash-and-stock deal, which would place a 35% premium over the last closing price.

Mellanox is a rival to Intel. The company makes hardware and chips that allow for faster transmission of big data. Mellanox caters to server farms with mega computers and has several universities, NASA, Dell Technologies and Hewlett Packard Enterprise as clients.

Other companies have shown interest in acquiring Mellanox in the past and Intel is not the only interested party. Last year, 

the press reported

 other companies were bidding for the Israeli chip maker, including Microsoft Corp.

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and Xilinx Inc.

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. In October, CNBC reported Mellanox hired a financial adviser to explore a sale after receiving takeover interest.


Israeli Times reported

 that Finance Minister Moshe Kahlon confirmed Tuesday that Intel would receive a $1 billion grant investing $11 billion to expand chip manufacturing in the country.

Neither Intel nor Mellanox have commented on the bid.