At the end of 1982, IBM paid $250m for new Intel Corp shares to give it a 12% stake in the chipmaker, and subsequently bought shares in the market to take its holding to around 24%. Now Intel has paid IBM $361.6m to buy 8.9m of those shares – 7.6% of the total out, leaving IBM with 13.7m Intel shares, 11.7%.The continuing IBM holding includes 7.8m shares to support the exchange of IBM Eurobonds for Intel stock under that February 1986 offering of IBM exchangeable subordinated Eurobonds. IBM said it intends to hold the remaining 5.9m shares as a continuing investment in Intel. IBM retains rights to manufacture the 80286 and 80386 under licence and was Intel’s largest customer last year, and will continue to buy substantially at least until 1990.
INTEL PAYS IBM $360m TO BUY BACK 8.9m OF ITS OWN SHARES
