Another Potential Intel Buyer Is Spotted

A few days ago, we reported that that Qualcomm was interested in buying Intel. The Wall Street Journal, reported recently that there's another interested party willing to shell out billions for a piece of the chipmaker.

The information from Bloomberg revealed that Apollo Global Management, one of the world's biggest private equity firms, has offered to take a multibillion-dollar stake in Intel. Though the ongoing discussions are confidential, the rumored amount is around US$ 5 Billion.

It's unclear if such an investment will go through, but it's the latest piece of evidence that Intel's low price and turnaround potential are looking attractive to several buyers and interested investors.

The recent gains may have also been spurred by the news that Qualcomm had approached Intel about a possible acquisition, which came out shortly before the market closed. A tie-up between the two tech giants would likely face significant regulatory scrutiny from anti-trust advocates.

With Intel's stock in the dumps following a disastrous second-quarter report that included the elimination of its dividend and a massive restructuring, it's not a complete surprise to see competitors and big investers like Qualcomm and Apollo circling and waiting to pounce.

What's unclear at this stage is if Intel would entertain a buyout offer or another "strategic option" like a multibillion-dollar partnership with a PE firm like Apollo, which could come with a request for board seats.