Trump administration in talks to take 10% stake in Intel

According to a White House official and other people who know the issue, a movement that can see that the US is the greatest shareholder of the besieged chip producer, the Trump administration is discussing about 10% of Intel Corp.

The Federal government is considering a potential investment that will involve Intel’s transformation from the US Chips and Science Law into equality. Intel will receive a grant of $ 10.9 billion chips law for commercial and military production.

This figure is roughly sufficient to pay for the targeted holding. Intel’s current market value, 10% shares of the chip manufacturer will be about 10.5 billion dollars. People are still in the flow, as well as whether the White House has chosen to progress with the plan.

Intel fell to 5.5% after notifying Bloomberg’s talks on Monday. Since February, 23% of the best weekly earnings last week have climbed.

White House spokesman Kush Desai refused to comment on the characteristics of the debate and said there was not only any agreement picture until it was announced by the management. Intel did not respond to a request for a comment immediately.

The White House official also swams the possibility of transforming other chips law awards into self -bets. It is not clear whether this idea has widespread traction in the administration or whether the authorities have increased the possibility with any company that may be affected.

Last month, an unprecedented movement, the Ministry of Defense, the Pentagon’s largest shareholder of the company’s largest shareholder, a little -known US rare land producer MP Materials Corp.

After Bloomberg News first declared discussions between US officials and representatives of the company last week, the news of a potential government investment in Intel launched a rally in the shares of the company.

As for all the winners of the Chips law, Intel’s grant money was designed to be paid over time when the company hits the negotiated project milestones. Intel received $ 2.2 billion grant payments from January.

Since President Donald Trump has taken the additional slices of the company’s award since his assignment, it is unclear whether Intel will receive money under a possible stock.