Intel Corp said the closing of its pending $2.2bn acquisition of Level One Communications Inc will be delayed until the third quarter due to regulatory red tape. The deal had originally been expected to close at the end of the second quarter but Intel says the time required for preparation and review of various filings with regulatory agencies has taken longer than initially expected. Level One has filed its proxy statement with the Securities and Exchange Commission and the two companies are currently responding to SEC comments on the proposed deal.
The deal is still expected to close and a meeting of Level One shareholders is now likely to take place in late July. Analyst Charlie Glavin at Credit Suisse First Boston said, We do not view this announcement as a setback, nor is it particularly surprising given the SEC’s recent scrutiny of market leaders such as Intel. Glavin believes the acquisition represents a key component in Intel’s strategy to move into the communications IC market and sees the two companies as an obvious cultural fit.
