Intel CFO says deal with U.S. designed to block sale of chipmaking unit, FT says

After the U.S. government agreed to take a 10% stake in Intel (INTC) by converting $8.9B of federal grants under the 2022 Chips Act into equity and negotiated a five-year warrant that allows the government to take an additional 5% of Intel at $20 a share if it ceases to own 51% of its foundry business, CFO David Zinsner stated during a Deutsche Bank conference that “I don’t think there’s a high likelihood that we would take our stake below the 50 per cent, so ultimately I would expect to expire,” reported Financial Times. “I think from the government’s perspective, they were aligned with that: they didn’t want to see us take the business and spin it off or sell it to somebody,” Zinsner is quoted as having said. Zinsner’s comments “highlight how the deal with the Trump administration ties the company’s hands,” the report added.