[News] Update on Potential Investors of Intel: Apollo Rumored in; Broadcom Temporarily out

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After Intel settled down plans for restructuring last week, revealing schemes to transform its foundry business into an independent unit with its own board, some potential buyers have been reportedly emerged. After Qulacomm’s rumored proposal of a friendly takeover, latest reports by Bloomberg and Reuters note that U.S.-based asset management company Apollo has recently expressed interest in making an equity-like investment worth up to USD 5 billion in Intel.

However, another U.S. chip giant Broadcom, which had earlier been exploring the possibility of pursuing such a deal, is said not actively considering an offer for Intel at the moment, Bloomberg suggests.

Citing sources familiar with the matter, Bloomberg notes that advisers are still presenting ideas to Broadcom. However, a spokesperson for Broadcom declined to comment.

It is worth noting that in 2018, Broadcom’s planned acquisition of Qualcomm was blocked by the U.S. government due to national security concerns. A potential deal between Broadcom and Intel would likely encounter similar regulatory hurdles.

On the other hand, U.S.-based asset management firm Apollo is said to shown interest in making an equity-like investment of several billion dollars in Intel, while the struggling giant is currently considering Apollo’s proposal, according to Bloomberg and Reuters.

The discussions, though, are still in the early stages and no agreement has been reached, the reports indicate.

This is not the first time Apollo has shown its interest in Intel. Earlier in June, the buyout firm and Intel announced a definitive agreement under which Apollo-managed funds and affiliates will lead an investment of USD 11 billion to acquire from Intel a 49% equity interest in a joint venture entity related to Intel’s Fab 34.

According to Apollo’s press release, located in Leixlip, Ireland, Fab 34 is Intel’s leading-edge high-volume manufacturing (HVM) facility designed for wafers using the Intel 4 and Intel 3 process technologies. To date, Intel has invested USD 18.4 billion in Fab 34.

Read more

• [News] Qualcomm Rumored to Consider Acquiring Parts of Intel’s Chip Design Business, with a Focus on PC Segment
• [News] Qualcomm’s Potential Takeover of Intel Might Have Minimal Impact on TSMC, But Not MediaTek

(Photo credit: Intel)