Apollo proposes $5 bln investment in Intel- Bloomberg

Asset manager Apollo Global Management (NYSE:APO ) offered to make an investment of up to $5 billion in beleaguered chipmaker Intel Corporation (NASDAQ:INTC ), Bloomberg reported on Sunday.

The asset manager indicated that it would be willing to make an equity-like investment in Intel, the Bloomberg report said, with top management of the chipmaker considering the offer. 

The equity investment would grant Intel some much needed breathing room, as the company grapples with a sharp decline in sales and a potential cash crunch. Intel plans to shave off several business as part of a major restructuring, with the chipmaker having announced job cuts for as much as 15,000 employees earlier this year. 

Intel may also split off its foundry business from its design business.

Apollo had earlier this year said it will acquire a 49% interest in a joint venture for Intel’s new production facility in Ireland for $11 billion.

Reuters reported last week that Qualcomm Incorporated (NASDAQ:QCOM ) was considering a takeover of the chipmaker, although such a deal was likely to face several regulatory hurdles. 

Once the world’s most valuable chipmaker, Intel’s shares are nursing a 60% slump so far this year, as its lagging of rivals TSMC (NYSE:TSM ) and NVIDIA Corporation (NASDAQ:NVDA ) came to a head in recent years. 

Source: Investing.com