Intel Corporation INTC saw a 2.38% increase in its pre-market trading on Monday, following reports of a potential multi-billion dollar investments from Apollo Global Management Inc. APO and a takeover interest from Qualcomm Inc. QCOM.
What Happened: Apollo, a U.S.-based asset management firm, is considering an equity-like investment of up to $5 billion in Intel, Bloomberg reported on Sunday, citing an anonymous source. This news arrives at a time when Intel, once the world’s most valuable chipmaker, has seen its shares plummet by nearly 60% since the beginning of the year.
At the time of writing, Intel was trading at $22.36 while it closed at $21.84 on Friday, according to Benzinga Pro.
Despite Intel’s current vulnerability, the company is reportedly reviewing Apollo’s proposal. However, the talks are still in their early stages and have not been finalized. The size of the potential investment and the likelihood of a deal are both subject to change.
Earlier in the year, Apollo announced a separate $11 billion deal to acquire a 49% equity stake in a joint venture connected to Intel’s new manufacturing facility in Ireland.
Meanwhile, Qualcomm has also reportedly expressed interest in Intel, with CEO Cristiano Amon personally leading discussions for a potential acquisition.
Apollo was up by 0.23% while Qualcomm was slightly lower at 0.25% during Monday pre-market.
Why It Matters: Intel’s stock has been on a rollercoaster ride this year. The company reported a significant decrease in its second-quarter earnings, leading to a drop in its shares. This was followed by Apollo’s $5 billion investment offer, which has sparked a new wave of interest in the company.
Qualcomm’s potential acquisition of Intel, amid the latter’s 60% stock decline, has also been a major point of discussion in the industry.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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