Globally, Intel has identified the internet economy as a major thrust area over the next three to five years and has accordingly embarked on an exercise to acquire such start-up companies including promising ventures in India.

Last month the company announced picking up stake in NRI-promoted Shiva Technologies apart from Level One, while within India it has reportedly taken an 11 per cent stake in Bangalore-based Network Solutions (NetSol).

Though refusing to comment on the reported deal, Intel South Asia director Atul Vijaykar said the company was looking at various companies but could not comment as the due diligence process on these companies was being conducted.

Asked the size of the fund earmarked for India, Vijaykar said there was no restriction on the budget ifthe acquisition had good potential. However, the company's main focus would be on e-commerce and other web services.Last month the company set up a new division for internet services which focus on setting up server farms and building high-end websites, he told press persons. At the same time, networking was another area which had been identified by the company.