Apollo wants $5 billion investment in Intel, Bloomberg News reports

(Reuters) – U.S. asset manager Apollo Global Management has offered to invest up to $5 billion in Intel, Bloomberg News reported on Sunday.

Apollo has indicated in recent days that it would be willing to make a billion-dollar equity-like investment in Intel, the report said, citing a person familiar with the matter.

The news comes at a time of weakness for Intel, which was once the world’s most valuable chipmaker but whose shares have lost nearly 60 percent of their value since the start of the year.

Intel executives have weighed in on Apollo’s proposal, Bloomberg reported, adding that deal talks are in a preliminary phase and have not been finalized.

Bloomberg said the size of the potential investment in Intel could change and talks about a deal could also fall through.

Apollo and Intel did not immediately respond to a Reuters request for comment.

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

The development for an investment in Intel comes shortly after Qualcomm approached Intel in recent days to explore a potential acquisition of the troubled chipmaker in what could be a transformational deal for the sector but faces many hurdles .

Qualcomm CEO Cristiano Amon is personally involved in negotiations to buy five-decade-old Intel, which is currently in an early stage, Reuters reports, citing a source who has been briefed on the matter.

Previously, Qualcomm also explored acquiring parts of Intel’s chip design business.

(Reporting by Mrinmay Dey in Bengaluru; Editing by Lisa Shumaker)