Comment on Intel details everything that could go wrong with US taking a 10% stake

oneser@lemmy.zip ⁨15⁩ ⁨hours⁩ ago

• suigenerix@lemmy.world ⁨12⁩ ⁨hours⁩ ago

  Good point. But would the share price otherwise have been higher without the government discounted purchase? Share dilution, law of supply and demand, etc are all decent arguments the shareholders could make.

  And there’s now increased risk that the purchase could cause future strategic and market challenges, especially internationally.

  Plus it’s not just a share price issue. For example, the fact that shareholders have had their voting power diluted is arguably a concern.

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  • oneser@lemmy.zip ⁨3⁩ ⁨hours⁩ ago

    Is the 10% new shares issued specifically for the government? I understood they were existing shares so dilution would not apply here.

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    • suigenerix@lemmy.world ⁨2⁩ ⁨hours⁩ ago

      New shares issued at a discount price. So a bit of a double punch for the existing share holders.

      Still, you’re highlighting of the price going up is a good point, and maybe all my food-for-thought ramblings mean nothing. I guess we’ll see.

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