Intel turned to law firm Skadden in White House deal for 10% stake
Intel has engaged law firm Skadden for a deal with the U.S. government, which will acquire a 9.9% equity stake in the company for $8.9 billion. This agreement, announced on August 22, comes at a discount to Intel's recent share price. Skadden has previously represented Intel in significant matters, including an $11 billion deal with Apollo Global Management. While the deal improves relations with President Trump, Intel warns it may pose risks to its business, including potential impacts on international sales and future government grants.
By David Thomas
Aug 25 (Reuters) - Intel (INTC.O) was represented by law firm Skadden in the chipmaker’s agreement for the United States to take an almost 10% equity stake deal in the company, according to documents filed on Monday with the U.S. Securities and Exchange Commission.
Skadden has represented Intel in a string of high-profile matters, including an $11 billion deal reached last year with Apollo Global Management (APO.N) related to Intel’s new manufacturing facility in Ireland.
Under Intel’s agreement with President Donald Trump’s administration announced on August 22, the U.S. will purchase a 9.9% stake in Intel for $8.9 billion, or $20.47 per share, which represents a discount of about $4 from Intel’s closing share price of $24.80 on Friday.
Skadden was one of nine major law firms that had pledged earlier this year to contribute a combined $940 million in free legal services to causes supported by Trump, in order to head off a White House crackdown on firms which the president had accused of racial discrimination and acting against the country’s interests.
Spokespersons for Skadden, Intel, the White House and the U.S. Commerce Department did not immediately respond to requests for comment, including on whether the government was represented by an outside law firm in the deal with Intel.
The deal puts Trump on better terms with Intel CEO Lip-Bu Tan, after the president recently said the CEO should step down due to conflicts of interest. But Intel said Monday the deal could pose risks to its business, from potentially harming international sales to limiting its ability to secure future government grants.
Trump on Monday said he would pursue other deals with companies similar to the agreement with Intel.
