The U.S. government secured a 10% ownership stake in Intel through conversion of $11.1 billion in previously issued funds and pledges. The deal delivers 433.3 million non-voting shares priced at $20.47 each, a discount to the $24.80 closing price that produces an immediate paper gain of about $1.9 billion. Intel is shedding more than 20,000 workers while recovering from more than $22 billion in losses since the end of 2023. Lip-Bu Tan has led the company for slightly more than five months amid prior national security scrutiny over past investments, then met with the president and received public praise.
The U.S. government is getting the stake through the conversion of $11.1 billion in previously issued funds and pledges. All told, the government is getting 433.3 million shares of non-voting stock priced at $20.47 apiece - a discount from Friday's closing price at $24.80. That spread means the U.S. government already has a gain of $1.9 billion, on paper.
Intel's current CEO, Lip-Bu Tan, has only been on the job for slightly more than five months, an d earlier this month, it looked like he might be on shaky ground already after some lawmakers raised national security concerns about his past investments in Chinese companies while he was a venture capitalist. Trump latched on to those concerns in an August 7 post demanding that Tan resign.
But Trump backed off after the Malaysian-born Tan professed his allegiance to the U.S. in a public letter to Intel employees and went to the White House to meet with the president, leading to a deal that now has the U.S. government betting that the company is on the comeback trail after losing more than $22 billion since the end of 2023. Trump hailed Tan as "highly respected" CEO in his Friday post.
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