Commerce Secretary Howard Lutnick said Tuesday that the Trump administration may consider taking ownership stakes in major U.S. defense contractors, following its recent deal to buy nearly 10% of Intel. In an interview on CNBC, Lutnick pointed to Lockheed Martin as an example, noting that 97% of its revenue comes from the U.S. government, effectively making it “an arm of the U.S. government.” Shares of Lockheed and other contractors, including Northrop Grumman, L3Harris Technologies, General Dynamics Corp, and RTX Corp, rose Tuesday after the comments. Intel last week disclosed an $8.9 billion investment from the government, giving it a 9.9% equity stake in the company. The stake is structured as passive, with the government declining board representation but pledging to support Intel’s recommendations in shareholder votes.
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00:02Commerce Secretary Howard Ludnick said Tuesday that the Trump administration may consider taking ownership stakes in major U.S. defense contractors,
00:09filing its recent deal to buy nearly 10% of intel.
00:12Interview on CNBC Ludnick pointing to Lockheed Martin as an example, noting that 97% of its revenue comes from the U.S. government,
00:19effectively making it an arm of the U.S. government.
00:21Shares of Lockheed and other contracts, including Northrop Grunman, L3 Harris Technologies, General Dynamics Corporation, and RTX Corp,
00:28rose Tuesday after the comments.
00:30Intel last week disclosed an $8.9 billion investment from the government, giving it a 9.9% equity stake in the company.
00:37The stake is structured as passive, with the government declining board representation
00:40to pledge to support Intel's recommendations in shareholder votes.
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