Apollo to offer up to $5bn investment in Intel - report

Apollo Global Management has reportedly offered to make a multibillion-dollar investment in Intel in a move that would be a vote of confidence in the chipmaker’s turnaround strategy.

Bloomberg cited people familiar with the matter as saying that the alternative asset manager has indicated in recent days it would be willing to make an equity-like investment of as much as $5bn in Intel. It was understood that Intel executives have been weighing Apollo’s proposal.

Nothing has been finalised, the size of the potential investment could change and discussions could fall through, resulting in no deal, the sources 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 to Bloomberg.

Under chief executive 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. California-based Intel agreed in June to sell a stake in a joint venture that controls a plant in Ireland to Apollo for $11bn, bringing in more external funding for a massive expansion of its factory network.