Trump admin in talks to acquire 10% stake in Intel, may convert grants into equity to become largest shareholder
The Donald Trump administration interviews the USA to achieve 10% of Intel Corp, the largest shareholder of the United States, referring to a White House official and other people familiar with the issue.
The government is investigating the option to receive a share in Intel by transforming some or all of the company’s grants into equality from the US chips and science law. Intel is expected to receive a grant of $ 10.9 billion for commercial and military production. This amount of grant is sufficient to get the targeted holding.
Based on Intel’s current market value, a 10% ownership will be about 10.5 billion dollars. People who are aware of the development, the exact size of the share and the White House’s decision to continue the plan was uncertain, he said.
LİVEMİNT He did not confirm the report independently.
A White House official said that the administration could turn some chips law awards into self -bets. It remains unclear whether this idea is whether it receives support within a wider administration or that the authorities talk to the relevant companies.
Meanwhile, Softbank Group Corp. On Monday, Intel announced its 2 billion dollars of stock purchasing plans. However, it remains unclear whether government support will increase Intel’s business. The company has difficulty in regaining its technological leadership in the sector and faced with stagnant sales and continuous losses.
The new CEO Lip-this Tan aims to revive the company and mainly focus on cost reductions and business cuts.
Intel stock decline
Intel investors initially responded positively to the state investment news and has led to the largest week of rally in the stock since February. However, after Bloomberg’s report on ongoing debates, stocks fell 3.7% on Monday.
Tan’s meeting with Trump
Last week, Tan met with Trump at the White House after the US President criticized him. Trump called for the removal of Tan because of past connections with China. Following the meeting, Trump praised Intel’s chief and described him as a “incredible story .. The report is expected to remain in the position of Tan despite previous criticisms.
If the Trump administration proceeds with an Intel capital share, it will fit a new model in which Washington adopts a more ambitious role in strategic sectors. Trump’s team made an agreement with China to get 15% of a certain semiconductor sales and received a so -called gold -shared share in the United States Steel Corp, as part of the agreement of the sale of a Japanese opponent.
(In entering from Bloomberg.)
