Intel accepts Apollo’s offer to invest up to $5 billion

The alternative asset manager has indicated in recent days that it would be willing to make a stock-like investment of up to $5 billion in Intel, said one of the people, who asked not to be identified discussing confidential information. Intel executives have weighed Apollo’s proposal, the people said.

Nothing has been finalized, the size of the potential investment could change and talks could fall apart with no deal, the people added.

The development comes as California-based Qualcomm Inc. floats an amicable takeover of Intel, people familiar with the matter said on Saturday, raising the prospect of one of the biggest M&A deals on record.

Representatives for Apollo and Intel declined to comment.

Under Chief Executive Pat Gelsinger, Intel worked on an expensive plan to remake itself and bring in new products, technology and external customers. This initiative led to a series of earnings-worsening reports that undermined confidence in the initiative and reduced market value by tens of billions of dollars. While Apollo may be best known today for its underwriting, buyout and credit strategies, the firm began in the 1990s as a distressed investment specialist.