Falconpoint Partners aims to invest up to $500m in SMS: WSJ

Falconpoint Partners aims to invest up to $500m in SMS: WSJ

The U.S. government's recent acquisition of a 9.9% stake in Intel (NASDAQ:INTC) marks a significant shift in its investment strategy, signaling a potential new wave of government investment. The deal, announced last week, involves the U.S. government purchasing 433.3 million shares of Intel at $20.47 per share [1]. This move, which involves converting previously awarded grants into equity, has been hailed by President Donald Trump as a potential starting point for a sovereign wealth fund.

Under the terms of the agreement, the government's stake is described as "passive," with no board seats or governance rights. This means Intel will maintain control over its operations. However, the government does have a five-year warrant to acquire an additional 5% of Intel's stock if the company sells more than 49% of its foundry business [2].

The investment comes as part of the U.S. government's broader effort to bolster Intel's financial health and foundry business. The $8.9 billion investment is in addition to the $2.2 billion in CHIPS grants Intel has already received, bringing the total U.S. government investment in the company to $11.1 billion [3]. While the deal has been met with mixed reactions, White House officials have emphasized that the government's involvement will be minimal.

Intel's stock rallied by more than 5% following the announcement of the deal, reflecting investor confidence in the company's future prospects [2]. The chipmaker has also secured a $2 billion equity investment from Japanese investment giant SoftBank, further boosting its financial position [3].

As the U.S. government continues to explore new investment strategies, the Intel deal serves as a significant example of how such initiatives could shape the future landscape of American technology and manufacturing.

References:
[1] https://www.ainvest.com/news/trump-hints-investment-deals-intel-stake-2508/
[2] https://timesofindia.indiatimes.com/technology/tech-news/donald-trumps-intel-investment-comes-under-law-that-he-once-called-horrible-horrible-thing/articleshow/123489051.cms
[3] https://finance.yahoo.com/news/intel-secures-8-9-billion-130350165.html