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Here are the risks involved with the US-Intel deal, according to the company
IntelIntel(US:INTC) Business Insiderยท2025-08-26 03:00

Core Viewpoint - The US government's investment of $8.9 billion for a 9.9% stake in Intel presents both opportunities and significant risks for the company, particularly regarding shareholder interests and future business operations [1][2]. Group 1: Investment Details - The deal reflects the US Administration's confidence in Intel's role in advancing national priorities and the domestic semiconductor industry [2]. - Intel is issuing stock to the government at a discount, which will dilute the shares of existing stockholders [3]. - The US government could become Intel's largest stockholder, reducing the voting rights and power of existing shareholders [4]. Group 2: Risks to Shareholders - The investment may limit Intel's ability to pursue future transactions that could benefit shareholders, potentially deterring third parties from engaging with the company [5]. - The deal could negatively impact Intel's international business, as 76% of its sales come from outside the US, exposing the company to additional regulations and restrictions [6]. - The conversion of government grants into equity stakes could limit Intel's ability to secure future government funding [7][12]. Group 3: Uncertainties and Legal Risks - The timing of the deal's completion is uncertain, with potential changes in laws or federal administration affecting the outcome [13]. - Financial, tax, and accounting impacts of the deal remain unclear due to its complexity [14]. - The deal could lead to adverse reactions from various stakeholders, including investors and foreign governments, and may result in lawsuits or increased scrutiny of Intel [14][15].