In a report published Friday, Deutsche Bank analyst Ross Seymore commented that a combined Intel Corporation (NASDAQ: INTC) and Altera Corporation (NASDAQ: ALTR) should be free of any regulatory issues and that a deal makes strategic sense.

"Given their foundry relationship at 14nm, Altera's need for leading edge technologies and Intel's expertise in process technologies, we think this makes as much strategic sense today as it has in the past," Seymore wrote. However, the analyst added that given Intel's $20 billion share repurchase plan that was announced last year, the likelihood of a deal of this scale is unlikely.

Seymore said that if a deal were to nevertheless occur, Intel's price tag on Altera shares would be in the mid-to upper-$40s, representing the average premium to prior day close for semi deals at around 35 percent.

Shares of Intel are Buy rated with a $38 price target.

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