"at a price of $20.47 per share." ($4.33 BELOW today's closing price.)
A few questions.
First, it's reported that these are non-voting shares. But, INTC's common stock is voting shares. Is this a new type of share? Does it stand in the same line for dividends as the voting common shares? Do shareholders have a say when a company dilutes its common stock? Does the BOD even vote, or does the government just order it?
Second, assuming that INTC non-voting common shares indeed exist, the discount from a closing price $24.80 must represent the value of voting rights, correct? (I'd love to be able to buy Q at a 20% discount and give up my worthless voting rights while retaining by dividend priority.)
Third, while the Commerce secretary says the government will have no say in business operations, when an EO is signed instructing the General Services Administrator to purchase only INTC PCs and desktops, will this count as having no say in the business? (This question applies regardless of the party controlling the WH at that time.)
Edit. Here's INTC statement: "The company's statement said that under the terms of the deal, the government has agreed to purchase 433.3 million primary shares of Intel common stock at $20.47 per share, equivalent to a 9.9% stake in the company. The government will have no board representation or other "governance or information rights," according to the statement, and the government agreed to vote with the company's board on matters requiring shareholder approval, with limited exceptions."
Very clearly, these are voting shares. Moreover, the government committed to voting with an entrenched board which has overseen the current state of affairs. Shareholders wanting a different direction have just been hosed - and the BOD is now more firmly entrenched.
Also, WHAT ARE THE "LIMITED EXCEPTIONS." |
