- The United States government will acquire 10% of Intel in exchange for 433 million shares
- But Intel is worried about Trump’s “additional substantial powers” in foreign businesses
- Trump praised the agreement to make the United States “richer” and to create more jobs
The next property agreement of the US Government could have effects on how Intel deals with foreign clients and governments in the future, which could be further amplified by Trump’s commercial and unpredictable rates policies, the company has admitted.
The United States government will acquire a 10% participation in Intel through a combination of subsidies of the unpaid chips and funds in an agreement valued at around $ 8.9 billion in total.
In return, Intel will deliver 433 million shares to the government, for a value of between $ 10-11 billion.
Intel could be affected by his American property
The difficult part comes in the form of foreign businesses, because around 76% of the tax revenues of Intel come from abroad, with popular markets such as China, Singapore and Taiwan.
Being partial by the United States government means that Intel could be exposed to laws of foreign subsidies, additional regulations, demands, political scrutiny and decline of competition that could seriously hinder their foreign sales.
“Having the United States government as a significant shareholder of the company could submit the company to additional regulations, obligations or restrictions, such as foreign subsidies laws or otherwise, in other countries,” Intel wrote in a presentation of the SEC.
Intel also pointed out that the interests of the United States government may not reflect those of their existing shareholders, and that their “substantial additional powers” could prevent “possible future strategic transactions” for the benefit of shareholders.
President Trump welcomed the agreement, claiming that he won the US $ 11 billion at a zero cost. “I paid zero for Intel, it is worth approximately 11 billion dollars. Everything goes to the United States,” he wrote on the social networks of truth.
The publication continues to explain how the price of Intel’s shares could rise while the United States would become “richer and richer.” Trump also pointed out that the agreement would generate “more jobs for the United States!”
“It is difficult to foresee all potential consequences,” Intel concluded.
Intel’s last quarterly revenues remained finals year after year at $ 12.9 billion, under the leadership of the new Lip-Bu CEO.
