Apollo eyes $5 billion investment in Intel, Bloomberg News reports
· CNA · Join:U.S.-based asset management company Apollo Global Management has offered to make an investment of as much as $5 billion in Intel, Bloomberg News reported on Sunday.
Apollo has indicated in recent days it would be willing to make an equity-like investment of billions of dollars in Intel, the report said, citing a person familiar with the matter.
The news comes at a moment of weakness for Intel, which was once the most valuable chipmaker in the world, but whose shares have lost nearly 60 per cent of their value since the start of the year.
Intel executives have been weighing Apollo’s proposal, Bloomberg reported, adding that talks regarding the deal are in a preliminary stage and have not been finalized.
Bloomberg said that the size of the potential investment in Intel could change and discussions regarding a deal could also fall through.
Intel declined to comment on the Bloomberg News report, while Apollo did not respond to a Reuters' request for comment.
Earlier this year, Apollo said it will acquire a 49 per cent equity interest in a joint venture related to Intel's new manufacturing facility in Ireland for $11 billion.
The development for an investment in Intel comes soon after Qualcomm has in recent days approached Intel to explore a potential acquisition of the troubled chipmaker in what could be a transformational deal in the sector but faces many hurdles.
Qualcomm CEO Cristiano Amon is personally involved in the negotiations to acquire five-decade-old Intel, which are currently in an early stage, Reuters reported on Friday citing a source who was briefed on the matter.
Previously, Qualcomm has also explored acquiring pieces of Intel's chip design business.
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