updated 01:45 pm EDT, Thu August 26, 2010
Intel buyout of Infineon wireless now imminent
Intel's plan to tips from sources asserted on Thursday. Three contacts understand that the weeks-long talks have progressed to where an acquisition could be finalized by Friday. Bloomberg hadn't learned of new terms but heard Infineon was seeking the equivalent of $1.91 billion to offload the money-losing division.
Neither of the involved companies has commented on the progress, although Infineon had previously admitted it was shopping the division around but has never confirmed the candidates.
An acquisition would be part of a burgeoning Intel strategy to solidify its upcoming presences in smartphones and tablets. The semiconductor firm just last week bought McAfee in a move that would let it incorporate hardware-based antivirus security into handhelds that normally can't run advanced security software. Infineon's cellular chips would give Intel both its own cellular chipsets and knowledge of how to create mobile-friendly parts.
A sell-off would have implications for Apple and other phone designers that are customers of Infineon's today. Although it's not in the iPhone 4, it still produces the cellular hardware found in the iPad and iPhone 3GS.