Reported 4 months ago
Elliott Investment Management has invested over $2.5 billion in Texas Instruments Inc., pushing the chipmaker to enhance free cash flow. Elliott's proposal aims for Texas Instruments to generate over $9 per share in free cash flow by 2026, citing concerns over the company's recent strategy shift towards in-house manufacturing and high capital spending levels. Despite Texas Instruments' assurance that the strategy is temporary, Elliott argues for more spending flexibility to adapt to changing market demand. Texas Instruments is reviewing Elliott's suggestions, emphasizing their long-term focus on free cash flow growth per share amid industry challenges and strategic investments.
Source: YAHOO