Apollo Reportedly To Invest Up To $5 Bln In Intel

(RTTNews) - Private equity firm Apollo Global Management Inc. (APO) has offered to make as much as $5 billion investment in chipmaker Intel Corp., Bloomberg reported citing people familiar with the matter.

Apollo previously had indicated its willingness to make an equity-like investment in Intel.

The report said the deal is yet to be finalized, and that the size of the potential investment could change. There are chances that the discussions may fall through, resulting in no deal.

The news comes as Qualcomm Inc. reportedly is preparing for a friendly takeover of Intel.

Earlier in June, Apollo agreed to acquire a 49% equity interest in Fab 34 joint venture in Leixlip, Ireland, related to Intel's chip manufacturing plant in Ireland for $11 billion. To date, Intel has invested $18.4 billion in Fab 34.

Apollo Partner Jamshid Ehsani then said, "It also underscores our role as a trusted financing partner, leveraging private capital to help build the New Economy, including next-generation AI technology which will require major investments in sustainable power generation, data centers, foundries and semiconductor capabilities."

Intel has been building or expanding factories in Arizona, Ohio, Ireland and several other locations with a view to boosting its business amid surging demand for chips.

Intel previously had agreed to a similar $30 billion deal with Brookfield Asset Management.