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U.S. government takes 10% stake in Intel

(www.cnbc.com)
607 points givemeethekeys | 2 comments | 22 Aug 25 21:01 UTC | HN request time: 0.026s | source
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voxadam ◴[22 Aug 25 21:29 UTC] No.44990041[source]▶
Intel press release:

https://newsroom.intel.com/corporate/intel-and-trump-adminis...

replies(1): >>44990541 #
robocat ◴[22 Aug 25 22:17 UTC] No.44990541[source]▶
So no shareholder vote required?

It is equivalent to a 10% dilution (shares issued for no extra cash).

replies(2): >>44990602 #>>44990687 #
lugu ◴[22 Aug 25 22:23 UTC] No.44990602[source]▶
How can this be any good for Intel? Why is the stock value bumping 6%?
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1. parliament32 ◴[22 Aug 25 22:33 UTC] No.44990724{3}[source]▶
The CHIPS grants had clawback provisions, which carry risk. This transaction removes that risk, so it's very good news for Intel.

> The existing claw-back and profit-sharing provisions associated with the government’s previously dispersed $2.2 billion grant to Intel under the CHIPS Act will be eliminated to create permanency of capital as the company advances its U.S. investment plans.

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2. lugu ◴[23 Aug 25 02:30 UTC] No.44992522[source]▶
How those 2 billions compare with 10% of Intel?