Wells Fargo sees relatively low probability for Qualcomm, Intel combination

Wells Fargo notes that following reports on Friday that Qualcomm (QCOM) had possibly approached Intel (INTC) about a positive acquisition, on Sunday Bloomberg reported that Apollo Global (APO) is considering up to a $5B equity-like investment in Intel. Wells thinks a Qualcomm + Intel combo has relatively low probability as such a combination would have a tough time passing regulatory scrutiny – especially in China. On the other hand, the firm thinks an equity-like investment from Apollo could be a very possible outcome, which would be a positive sign of confidence. However, the extent of existing shareholder dilution would be a key consideration, Wells adds.