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Commerce Secretary Lutnick defends potential stakes in

defense

firms

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Trump administration's federal intervention raises

corporate

strategy concerns

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Shares of Lockheed, Boeing ( BA ) rise; Palantir ( PLTR ) falls after

Lutnick's

comments

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Lutnick cites Pentagon leaders in defense company stake

discussions

(Adds share prices, Lutnick quote, requests for comment,

photos)

WASHINGTON, Aug 26 (Reuters) - The Trump administration

is weighing possible stakes in defense companies and others it

does business with, U.S. Commerce Secretary Howard Lutnick said

on Tuesday in defending President Donald Trump's push for a

greater federal government role in American businesses.

"They're thinking about it," Lutnick told CNBC, citing Pentagon

leaders, when asked if the administration was considering taking

pieces of contractors such as Lockheed Martin Corp ( LMT ),

Boeing Co ( BA ) or Palantir Technologies Inc. ( PLTR ) "There's

a lot of talking that needs to be had about how do we finance

our munitions acquisitions."

"There's a monstrous discussion about defense. Lockheed

Martin ( LMT ) makes 97% of their revenue from the U.S. government. They

are basically an arm of the U.S. government," he added.

Boeing ( BA ) declined to comment, and representatives from

Lockheed and Palantir ( PLTR ) did not immediately respond to a request

for comment.

Following Lutnick's comments, shares of Lockheed were up

1.1%, while Boeing ( BA ) was up about 0.7% and Palantir ( PLTR ) was down about

1%.

On Monday, Trump said he wants to make more U.S. government

investments in healthy American companies even as critics warn

that such a role for the government could limit corporate

strategy and market agility and questions are raised about the

impact on consumers.

The Trump administration last week announced a near-10% stake

in chipmaker Intel ( INTC ). It previously intervened to

complete the purchase of U.S. Steel by Japan's Nippon Steel in

June, taking what Trump called a "golden share" that gives

Washington say over its operations.

It also took a stake in rare earths company MP Materials ( MP )

, and brokered a deal with chipmakers Nvidia ( NVDA ) and

AMD to take 15% of revenue from sales to China of chips

that had previously been prohibited.

The unusual level of federal government intervention in the

economy has created unexpected alliances, with liberal U.S.

Senator Bernie Sanders backing the stake in Intel ( INTC ).

Lutnick on Tuesday said companies that need federal

assistance should be prepared to deal with Trump.

"If a company comes to the United States of America government

and says: we need your help, we want to change everything... I

think that's a question between the CEO and the president of the

United States of whether he will listen to them and change the

rules," he told CNBC, citing the Nvidia ( NVDA ) deal.

"If we are adding fundamental value to your business, I

think it's fair for Donald Trump to think about the American

people," Lutnick added.