Bloomberg's Porter on INTC/McAfee, Heilemann on VP Picks(Audio)

than the point fifty two little change their down. Industrials up twenty five points, a gain of point one percents, stacked down nine to five thousand thirteen to drop there of two tenths of one percent, Tenure up fourteen thirty seconds. Yeald there one point four or six percent, Gold up nine fifty the ounce the thirteen forty four, a gain

of seven tenths of one percent. And crude oil down a dollar eighty five of barrel ninety five right now on West Texas Intermediate lower by three point nine percent. I'm Charlie Tellett, and that's a Bloomberg Business Flash. You're listening to Taking the Stoff with Kathleen Hayes and Pim Fox on Bloomberg Radio. Intel It's computer security unit McAfee is drawing interest from private equity firms as the company

considers selling the business. This is according to people with the knowledge knowledge of the matter contacted by Bloomberg here to talk about the deal, and his story is Bloomberg's own Kyle Porter. He is from our deal's team here in the U S So, Kyle, why is Intel considering selling its computer security unit at a time when so many people are concerned about computer security? Oh, good afternoon. It's a combination of fact. Is really the fact that

the acquisition was done five years ago. There was an aim of integrating into the process of constructing the computer chips security software that has gone a lot slower than Intel wort of Light. At the same time, there's been a real lack of comparative investment in the product, and there's allowed competitors to get ahead. Uh. That has allows them to look forward and say, well, maybe we should be thinking looking about with this business. Maybe there is

a better owner and private equity. It's a corporate widowed as said, it's sort of the classic things that they'll account Kyle. The price tag in was seven point seven billion, dollars. Was this a seven point seven billion dollar mistake? That's above might pay grade to answer with a yet or no. But if you look at the division in which mccaffee sits, and there are other products in there, they're operating profit

last year with two and ten million. If you've take an ebitdar Figer, it's not going to be a million miles away from that, and you're not going to get more. Even at eleven times, you'd be talking possibly three billion for a product equits for them to buy it. So it sounds like you just answered Pim's question. If you bought it for almost eight billion, you're only selling for three Maybe that wasn't such a good deer With that

in mind, who wants to buy? Who says, great, we can pick up a bargain now, it's it's from the information that we've received, it's been the product the firms that have a lot of technology to experience. Three of the firms that's in the story to Tom A Brow and this only really do technology and software deals. And there are the first firm that we have listed there has also got a very long attract record of doing deals in this space and being very successful at it.

We understand if her process is initiated and it's you know, you've got to be clear that while we understand the Intel has talked to potential advisors about running something, they haven't made a decision yet. You could expected view of responsors to come out of the woodwork. Is McAfee competitive in the security business right now? It's certainly not. It's certainly a well known brand and you know it's used

by a lot of businesses and consumers. Where you put it in the five of the top ten, yeah, I'd still say quite possibly. So, Uh, what does this mean for Intel? I guess outside of the is there anything else they might want to sell? For example? I mean, is there anything and that's sort of hanging around their neck now that you guys are trying to sets out, well, there's been a lot of talker and Intel mean, it's if they've made very completame, if they're looking at refocusing,

looking at doing different things with the business. Earlier this year, that was talking and selling off a significant chunk of their venture capital ports earlier we'd estimated about a billions worth, and that with all smaller businesses that they linked to gowing consumer part of the business now that was subsequently pulled.

We understand partly as a resort of pressure internally and partly because there was a feeling that they weren't going to get the prices that they wanted from specialist private equerty players. But I wouldn't be surprised to see more indes on Intel. Possibly they're looking at divestments in the coming months. Uh. Is Brian Crecentages are the chief executive of Intel. Is this part of his overall strategy for the company. H. He's certainly looking at learning and changing

the company and boost productivity. As you mentioned in the story, the definitely been a sort of hit that it's in the pastor for years by Intel away from more of the tumor in the PC business. I'm just wondering, too, uh, in the environment we're in right now. You had a story this week about Pearla Weinberg, another big private equity arm UH saying it plans a second fund. What is the what's the landscape now? What's the move? We've got the baseball today from the FED, modest growth in the US,

brexident certainty in the UK. How would you describe sentiment and animal spirits right now in terms of if every equity and deals in general is because it's considered a pretty strong macro signal when they pick up and or

if they saw down. Well, that's very true. But if you're looking at private equity and the basic model is too you know, buy low and sell high, and when equities are it's high, it's very difficult to compete against corporates when you're looking at acquisitions and bringing stuffing directly from the stock market. There's been you know, not a great deal of activity on that from the past two or three years, and sponsors are continuing to accumulate capital

and not doing deal. If you're looking to exit, it's been a perfect onto. That's been record distributions by a lot of sponsors over the past two to three years. They're now desperate to start getting things done and the best environment united to go look for assets that they can fit in widowed by corporates that when you come in you can pull them out and get a dedicated management tinion that you can improve them. And you could certainly say that McAfee would sit into that boocket. Thank

you very much for spending time with us. Kyle Porter's Deals America's reporter for a Bloomberg News speaking about the potential sale of Intel's McAfee unit, said to draw interest from a variety of private equity firms. Are shares of Inteller up twelve cents right now thirty five dollars and seven cents. Let's turn our attention now to politics and John Hileman. He is, of course the co host of,

with all due respect car managing editor, Bloomberg Politics. He is also the host of the program weeknights five pm on Bloomberg Television and Bloomberg One in Washington, d C. John Hyleman give us an update on the vice presidential selection process for uh. Let's start off with Donald Trump. Well, the game's a foot him. Um. You know we had the big news this morning was you know, Donald Trump had been in the Indie Indianapolis last night on stage

with Governor Pence. A lot of reporting suggesting that Pence was, if not the certain pick, certainly uh, in among the top one or two, um or the top two or three maybe considerations. Um. Trump made some comments last night on stage that suggested that kind of toying with the idea of calling Pence potential vice president. Then his family. Trump's family showed up this morning to meet with him

and Governor Pence at the governor's mansion. So Ivanka Trump and Eric Trump and Paul manif At, the campaign manager, all caught on camera showing up there. Uh, and a lot of people as a that that that eight or nine or ten am this morning, thought well, that's it. It looks like it's gonna be Mike Pence. Then suddenly we learned that new Gigris was on his way to Indiana Polis also, as was Jeff Sessions. Uh, the senator,

Alabama Senator, who's up. I've been doing a lot of what was the only I believe senate endorser for Donald Trump. So those two guys are now meeting with Trump and the family also, and it's said that Trump spoke today on the phone with Chris Christie and that his family

met with Christie a couple of days ago. So we believe at this point, and you know, you never really know in the world of deep steaks, there could always be a surprise, but we think at this moment that the shortlist is now down to those four guys, King Rich, Uh, Sessions, Christie, and Pence. And I think that where we're at right now is is Trump trying to do his final gut check.

He knows these guys a little bit, now, knows what they believe in, knows how compatible they are, but trying to figure out what does he really want from a running mate most and who does he feel most comfortable with, not just as a a companion on the campaign trail, but also potentially as a governing partner if he wins.

So for those in New Gangridge has been so much in the public eye, Chris Christine in the public eye, tell us bit more about Indiana Governor Mike Pence, because John, I would say, among the four you've mentioned, he seems to be the least known on the national stage. He's a highly uh regarded and well known figure within the conservative movement. He was a congressman, a congressman for a very long time from Indiana before he became the governor

of Indiana, succeeding the very popular governor Mitch Daniels. And he's a guy, he's very very He's a con social conservative, a strong, strong ardent born again Christian, very very far on the conservative end of the spectrum in terms of his views on social issues. And cultural issues, also a very strong conservative on foreign policy and on fiscal matters.

And to the extent that Trump is interested in him, it seems to be driven, at least in terms if you're thinking about pure political calculation, driven by the problem that Trump has with conservatives in his own party. If he's gonna try to unify the Republican Party and pull people from the right into his column, some of whom are still dubious about him, Pence would be maybe a good way to do that. John, can you comment on the ongoing battle it seems between Donald Trump and Ruth

Bader Ginsburg, a Supreme Court justice. Well, it's a little unusual, for sure, Pim. I mean the notion that Ruth Bader Ginsburg decided to criticize Donald Trump three times in the course of the last few days, on Friday, on Saturday, and then again on Monday. It's a various news outlets. It's unusual for a sitting Supreme Court justice to insert him or herself in politics in that way. But Ginsburg, as you know, is known as the notorious RVG, so maybe she's just trying to live up to her nickname.

Um Trump, of course, is now attacked her twice on Twitter. Uh, first telling her that she should not have said what she said and should apologize, then saying that she should resign. Um. You know, it's a little unclear what Bader Ginsburg's motives are other than speaking her heart, and she doesn't really care. This is a fight, though. That's kind of good for Trump beating up judges. Good with conservatives. John Harman, thank you so very much. He's co hosted with all due respect.

He hosts with all due respect Monday through Friday at five o'clock Wall Street Time on Bloomberg TV. You can also catch that show on Bloomberg in Washington, d C. This is Bloomberg m