Nothing has been finalised, the size of the potential investment could change and discussions could fall through, resulting in no deal.
Intel has been working on an expensive plan to remake itself and bring in new products
Photo Credit: Reuters
Apollo Global Management has offered to make a multibillion-dollar investment in Intel, according to people familiar with the matter, in a move that would be a vote of confidence in the chipmaker's turnaround strategy.
The alternative asset manager has indicated in recent days it would be willing to make an equity-like investment of as much as $5 billion (roughly Rs. 41,753 crore) in Intel, said one of the people, who asked not to be identified discussing confidential information. Intel executives have been weighing Apollo's proposal, the people said.
Nothing has been finalised, the size of the potential investment could change and discussions could fall through, resulting in no deal, the people added.
The development comes as San Diego-based Qualcomm floats a friendly takeover of Intel, people with knowledge of the matter said on Saturday, raising the prospect of one of the biggest-ever M&A deals.
Representatives for Apollo and Intel declined to comment.
Under Chief Executive Officer Pat Gelsinger, Intel has been working on an expensive plan to remake itself and bring in new products, technology and outside customers.
That initiative has led to a series of worsening earnings reports that have undermined confidence in the initiative and knocked tens of billions of dollars off its market value. While Apollo may best be known today for its insurance, buyout and credit strategies, the firm started out in the 1990s as a distressed-investing specialist.
The companies already have a relationship. Santa Clara, California-based Intel agreed in June to sell a stake in a joint venture that controls a plant in Ireland for $11 billion (roughly Rs. 91,857 crore) to Apollo, bringing in more external funding for a massive expansion of its factory network.
Apollo also has other experience in the chipmaking space. Last year, the New York-based firm agreed to lead a $900 million (roughly Rs. 7,515 crore) investment in Western Digital Corp., buying convertible preferred stock.
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(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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