President Donald Trump on Friday announced that the American government has secured a 10% stake in Intel, the Associated Press reports.
The deal comes amid prolonged struggles for the Silicon Valley pioneer and follows Trump’s prior criticism of Intel’s CEO as unfit for the job.
The U.S. government’s stake in the company will be made possible through the conversion of $11.1 billion in previously issued funds and pledges.
In total, the government is getting 433.3 million shares of non-voting stock priced at $20.47 each — a discount from Friday’s closing price of $24.80.
The U.S. has therefore already gained $1.9 million, on paper.
The move makes the U.S. government one of Intel’s largest shareholders just as the company is in the process of jettisoning more than 20,000 workers as it tries to bounce back from years of missteps under various CEOs.
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