Apollo Global Management has offered to invest billions in Intel Corp, according to people familiar with the matter, in a move that would be a vote of confidence in the chipmaker’s turnaround strategy.
The people added that nothing has been finalized yet, the size of the potential investment could change and discussions could fall apart, resulting in no deal being reached.
The development comes amid a friendly bid for Intel by San Diego-based Qualcomm Inc., raising prospects for one of the largest mergers and acquisitions ever, people familiar with the matter said on Saturday.
Representatives for Apollo and Intel declined to comment.
Under Chief Executive Pat Gelsinger, Intel has been embarking on a costly plan to reinvent itself and bring in new products, technologies and outside customers.
The move led to a series of deteriorating earnings reports, eroding confidence in the move and costing it tens of billions of dollars in market value. Although Apollo is now known for its insurance, acquisition and credit strategies, the company started out as a distressed investment specialist in the 1990s.
The two companies have already established a cooperative relationship. Santa Clara, California-based Intel Corp in June agreed to sell a stake in a joint venture controlling an Irish factory to Apollo for $11 billion (about Rs 91,857 crore), setting the stage for a massive expansion of its factory network. Come more outside funding.
Apollo has other experience in chip manufacturing. Last year, the New York-based company agreed to lead a $900 million (approximately Rs. 7,515 crore) investment in Western Digital for convertible preferred shares.
© 2024 Bloomberg
Follow us On Social Media Twitter/X
