Apollo Global Management’s Offer to Invest in Intel

(Reuters) – U.S.-based asset management company Apollo Global Management (NYSE:APO) has offered to make an investment of as much as $5 billion in Intel (NASDAQ:INTC), Bloomberg News reported on Sunday.

Apollo has indicated in recent days that it would be willing to make an equity-like investment of billions of dollars in Intel, according to the report, which cited a person familiar with the matter.

The news comes at a time of weakness for Intel, which was once the most valuable chipmaker in the world but has seen its shares lose nearly 60% of their value since the beginning of the year.

Intel executives have been weighing Apollo’s proposal, and Bloomberg reported that discussions regarding the deal are in a preliminary stage and have not been finalized.

The size of the potential investment in Intel could change, and discussions might not conclude successfully, according to Bloomberg.

Intel declined to comment on the Bloomberg News report, while Apollo did not respond to a Reuters request for comment.

Earlier this year, Apollo announced it would acquire a 49% equity interest in a joint venture related to Intel’s new manufacturing facility in Ireland for $11 billion.

This potential investment in Intel comes soon after Qualcomm (NASDAQ:QCOM) approached Intel to explore a potential acquisition of the struggling chipmaker, which could represent a significant shift in the sector but faces considerable challenges.

Qualcomm CEO Cristiano Amon is personally involved in the negotiations to acquire Intel, which is currently in an early stage, according to a source briefed on the matter. Qualcomm had previously considered acquiring parts of Intel’s chip design business.