Intel Corporation (NASDAQ:INTC) has reportedly been in talks for a takeover of Altera Corporation. Recently, TIG Advisors, the leading shareholder of Altera, made a move that makes the acquisition easier for Intel. TIG contested the nomination of a leading independent director to Altera’s board, the one who was against the merger.

Intel had initially tried to acquire part of Altera shares for $54 each, which was turned down by the company. The two companies reached an agreement that Intel would not publicly state an offer until June. That contract is about to expire and with the pressure from major shareholders, Altera might just enter in talks.

Intel is the leader in making microprocessor chips for computers and other devices while Altera concentrates on communications. The two companies have had significant partnerships in the past, which have been profitable for both. The reason Intel is so determined to acquire Altera this time is its new Xeon processors.

Intel and Altera have previously worked together on multi-die devices, which make use of Altera FGPAs and systems on a chip and integrate them with other components of the device. Intel now plans to make similar variations of its Xeon D processors. This would allow the new chips to quickly perform certain tasks.

TIG Advisors has pointed out that Altera has been disappointing its shareholders, by not going through with the deal. However, an intervention to stop the appointment of one of the directors to the board should send a strong message, forcing Altera to resume talks. TIG believes that the delay is against the fundamentals of Altera and is causing hindrance to the company’s growth.

Once the agreement between the two companies expires on June 1, Intel can go for a hostile takeover. The stock already trades well below $54, so it would not be very hard for Intel to convince shareholders to give in.