(Reuters) – U.S. asset management firm 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 is prepared to invest billions of dollars in Intel, according to the report, which is based on a source familiar with the matter.
The news comes at a time of weakness for Intel, once the world’s most valuable chipmaker but whose shares have lost nearly 60% of their value since the beginning of the year.
According to Bloomberg, Intel executives have considered Apollo’s proposal, but they say the deal talks are still in an exploratory stage and have not yet been completed.
Bloomberg said the size of the potential investment in Intel could change and that talks over a deal could also fail.
Apollo and Intel did not immediately respond to a Reuters request for comment.
Earlier this year, Apollo announced that it would acquire a 49% stake in a joint venture related to Intel’s new manufacturing facility in Ireland for $11 billion.
The development of an investment in Intel comes shortly after Qualcomm approached Intel in recent days to explore a potential acquisition of the troubled chipmaker, a deal that could be transformative for the sector but faces many obstacles.
Qualcomm CEO Cristiano Amon is personally involved in negotiations to acquire 50-year-old Intel, which are currently in the early stages, Reuters reported Friday, citing a source familiar with the matter.
Qualcomm has previously also looked at acquiring parts of Intel’s chip design division.
(Reporting by Mrinmay Dey in Bengaluru; Editing by Lisa Shumaker)
