In light of a possible takeover by Qualcomm, multibillion dollar investment has been offered to Intel Corporation by Apollo Global Management, a leading alternative asset manager known for insurances and buyouts.
Apollo, having dipped itself in the chip-making industry through a USD 900 million investment in Western Digital, previously demonstrated its eagerness to offer as much as USD 5 billion to Intel in the form of an equity-like instrument as Intel executives have been pondering such an approach.
With much of the detail yet to be concluded, the possible investment could still vary in size or fail to take off at all. Meanwhile, Apollo and Intel have declined to provide any comment on the matter.
Intel has been acting on a costly scheme to renovate itself to introduce new products and technology, as well gather external customers. Nonetheless, the scheme resulted in an exacerbating income, wearing away any confidence vested in the plan while taking away billions of dollars from its market value.
Both entities have an established relationship prior to the above proposal – Santa Clara Intel sold its joint-venture stake in an Ireland plant to Apollo for USD 11 billion which raised funding for the factory expansion.
