Intel warns of risks and fears adverse reactions to its business after the US acquired 10% of the company.

Technology company Intel warned the U.S. securities regulator on Monday that the U.S. government's stake in its stock poses "risks and uncertainties" for its business and shareholders, and noted the potential impact on its international sales.
In a document submitted today to the Securities and Exchange Commission (SEC), Intel details the risks it sees following the agreement under which the government will control nearly 10% of the company's stock, a transaction that was expected to close on Tuesday, August 26, or "as soon as possible" thereafter.
The company says its sales outside the United States accounted for 76% of its revenue last year , and that business could be "negatively impacted" by the U.S. share , as it could face "additional regulations, obligations, or restrictions" in other countries.
Intel acknowledges that there is no recent "precedent" in the U.S. for such an operation and believes there may be adverse reactions , immediately or over time, from investors, employees, customers, suppliers, business partners, foreign governments, or competitors.
"There may also be litigation related to the transaction or otherwise, and increased public or political scrutiny of the company," he adds.
Another risk noted to the SEC is that government involvement "reduces the voting and other governance rights of shareholders and may limit potential future transactions that may be beneficial" to them.
Furthermore, it notes that the transfer of government funds depends on the legislative branch's "availability" to appropriate them and the executive branch's "capacity" to obtain them, and that in the future either of those branches or the judiciary can invalidate part or all of the transaction.
In this regard, the company cites the risks of "changes in federal administration and congressional priorities," or changes in laws and regulations and their interpretations.
US President Donald Trump said Monday he intends to make more deals of this kind and downplayed criticism by pointing to Intel's stock price up around 25% since the beginning of August.
eleconomista