"Some investors are not happy that Intel agreed to sell the US a 10 percent stake in the company after Donald Trump attacked Intel CEO Lip-Bu Tan with a demand to resign. After Intel accepted the deal at a meeting with the president, it alarmed some investors when Trump boasted that his pressure campaign worked, claiming Tan "walked in wanting to keep his job, and he ended up giving us $10 billion for the United States.""
""It sets a bad precedent if the president can just take 10 percent of a company by threatening the CEO," James McRitchie, a private investor and shareholder activist in California who owns Intel shares, told Reuters. To McRitchie, Tan's acceptance of the deal effectively sent the message that "we love Trump, we don't want 10 percent of our company taken away.""
Intel agreed to convert $11.1 billion in CHIPS funding and other grants into a 9.9 percent equity stake in Intel held by the United States. Donald Trump pressed Intel CEO Lip-Bu Tan and later said Tan "walked in wanting to keep his job, and he ended up giving us $10 billion for the United States." Shareholders including James McRitchie warned the deal sets a bad precedent by allowing presidential pressure to secure corporate equity, and Kristin Hull said she has "more questions than confidence" about investor benefits. Some tech firms and politicians praised the conversion as returning value from CHIPS grants to the U.S., while Commerce Secretary Howard Lutnick criticized previous CHIPS funding as given "for free."
Read at Ars Technica
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