Intel Corp will shortly depart the IBM sphere of influence and regain full independence: on Friday, IBM announced its intention to redeem the $300m of 6.375% exchangeable subordinated Eurobonds due 1996 and convertible into Intel shares held by IBM. The bonds were issued in March 1986 and are exchangeable for Intel common shares at $38.50 face amount per share. Provisions of the issue allow IBM to call the bonds if the market price of Intel shares – 58.375 ahead of the IBM announcement -was at least 130% of the exchange price for 30 consecutive trading days, a condition that has now been met. The redemption date is November 10. The paying agent for the debentures will be Chemical Bank, New York and London.
