Apollo Global Management Inc. has offered Intel Corp. a billion-dollar investment, people conversant in the matter said, a move that may be a vote of confidence within the chipmaker’s turnaround strategy.
The alternative asset manager has indicated in recent days that it’s willing to make an equity-like investment of as much as $5 billion in Intel, said certainly one of the people, who asked to not be identified to debate confidential information. Intel executives have been reviewing Apollo’s proposal, the people said.
Nothing has been finalized yet, the quantity of the potential investment could change and the talks could fail, leading to no deal, the people added.
The development comes as California-based Qualcomm Inc. friendly takeover from Intel, people conversant in the matter said on Saturday, raising the prospect of certainly one of the largest M&A deals ever.
Representatives for Apollo and Intel declined to comment.
Under CEO Pat Gelsinger, Intel is working on a costly plan to reposition itself and attract recent products, technologies and out of doors customers. This initiative has led to a series of deteriorating earnings reports which have undermined confidence within the initiative and shaved tens of billions of dollars off the corporate’s market value. Apollo is best known today for its insurance, acquisition and credit strategies, but it surely began within the Nineteen Nineties as a specialist in distressed investments.
