In the most recent unusual move by the White House in corporate America, President Donald Trump announced on Friday that the United States would acquire a 10% stake in Intel as part of an agreement with the faltering chipmaker that turns government assistance into equity shares.
Following Trump’s previous statement that Intel CEO Lip-Bu Tan should resign due to conflicts of interest, the agreement improves relations between the two men. It will guarantee that roughly $10 billion will be given to the chipmaker to establish or expand factories in the United States.
The deal calls for the US to pay $8.9 billion, or $20.47 per share, for a 9.9% interest in Intel. This is roughly $4 less than Intel’s closing share price of $24.80 on Friday.
The $5.7 billion in unpaid payments from the Biden-era CHIPS Act and the $3.2 billion given to Intel for the Secure Enclave program also given under Trump’s predecessor, Democratic President Joe Biden will be used to finance the acquisition of the 433.3 million Intel shares.
After closing up 5.5% during regular trading, Intel’s shares increased by about 1% during Friday’s extended session. According to a White House official, Trump and Tan met on Friday. This came after Trump met with the CEO of Intel on August 11 and asked that Tan resign due to his connections to Chinese companies.
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