Update: AMD Board Approves Acquisition of ATI, Bankers Confirm
July 22, 2006 12:20 AM
comment(s) - last by
Reports claim a $5.6B deal is about to close on an unprecedented merger
According to a report in
The Globe and Mail
board of directors at AMD has allegedly approved the takeover of Canadian graphics firm ATI Technologies
. The report claims that the information was released by an investment banker that was part of the discussions. According to other sources, AMD executives were also seen at ATI's headquarters in Markham, Ontario. The report indicated that AMD is considering a
$5.6 billion takeover bid for ATI
Speculation and rumors have run rampant over the last several months about the possible merger between AMD and ATI, but no concrete details have been revealed. According to reports on ATI's share prices, the company's shares have been trading at double the usual volume today. Analysts said that AMD would be making an offer of 20 to 40 percent premium to ATI's current share price. ATI shares traded at $16.12 on the NASDAQ today during after hours, which is up 39 cents from yesterday's closing.
has also picked up on the story
, claiming that "Some analysts have questioned the rationale for an AMD-ATI merger, and others were surprised that the speculation received no attention from analysts during AMD's earnings conference call on Thursday."
had punched in for question during the
investor conference call on Thursday
, but a moderator would not respond.
According to Eric Gomberg, an analyst for investment bank Thomas Weisel Partners, "there has been considerable industry speculation that AMD may pursue an acquisition of ATI Technologies, although such an outcome is by no means certain." Gomberg's comment came in earlier this week, but word circulating around investment bankers who are aware of the talks between ATI and AMD surfaced just several hours ago.
Recent reports indicated that Intel roadmaps
no longer included ATI chipsets
. Although Intel had been producing motherboards using ATI logic, upcoming boards like those that support Core 2 processors are void of any chipset from ATI. Interestingly, ATI and Intel had agreed to several cross-licensing programs that allowed them to take advantage of some of each other's technologies. Several analysts however, indicated that the merger between AMD and ATI to be "out of strategy for AMD and out of focus. Stupidity is no barrier to tech mergers."
A report in the
Wall Street Journal confirms the talks between AMD and ATI
(subscription required) today. Although the deal is not final, the report said that representatives from both companies declined to comment.
AMD has previously indicated that it would embrace embedded processor technologies for its
platform -- some of which would include
math and physics co-processors
. However, the company has recently
exited all non-x86 processor design
AMD and ATI jointly announced the confirmation of the $5.4B merger today (July 24, 2006)
This article is over a month old, voting and posting comments is disabled
7/22/2006 2:23:12 AM
One of the last best part of Canada now goes to US, how sad the way things are going.
7/22/2006 3:16:00 AM
Yeah, i was thinking the same thing...a bit sad if it's true.
And with an INCO/Falconbridge/Teck Cominco merger, our mineral industry is gonna be taken over also.
I thought a strong Canadian dollar would ease this sort of thing.
7/22/2006 1:41:12 PM
The sooner the better - I got tired of stupid sales taxes and "free" healthcare. We need more freedom here, and less government intervention into our lives. Go go go USA!
7/22/2006 3:47:53 PM
Go go go USA! :)
"If you mod me down, I will become more insightful than you can possibly imagine." -- Slashdot
AMD-ATI: A Done Deal
July 24, 2006, 5:00 AM
AMD Plans To Demonstrate Native Quad-Core This Year
July 21, 2006, 6:57 PM
Intel "Bearlake" Motherboard Lineup
July 18, 2006, 2:36 AM
AMD Spins Off Alchemy CPU, Opens Door for AMD Co-Processors
June 14, 2006, 12:04 AM
AMD Announces "Torrenza" Technology
June 1, 2006, 2:20 PM
Report: AT&T Eyeing $40B DirecTV Purchase
May 1, 2014, 8:00 AM
WebOS Class Action Settlement Costs HP $57 Million
April 1, 2014, 10:22 AM
IBM Workers Strike Over Terms of Deal That Will Have Them Working for Lenovo
March 6, 2014, 9:29 AM
Google Picking Up Artificial Intelligence Company "DeepMind" for $400 Million
January 27, 2014, 9:25 AM
Quick Note: Qualcomm Grabs up Palm, IPAQ, and Bitfone Patent Portfolio from HP
January 24, 2014, 9:18 AM
Verizon Buys Intel Media OnCue Cloud TV assets
January 21, 2014, 10:26 AM
Most Popular Articles
Numerous Leaks Detail 4.7" iPhone 6 Processor, RAM, Cellular and NFC Capabilities
August 29, 2014, 10:37 PM
Apple Builds Not-So-Secret Secret 3-Story Tower for iPhone 6/iWatch Unveil
August 28, 2014, 3:41 PM
Buzz Grows Over Upcoming Lenovo Vibe X2's "Layered" Rim, Intel Chip
August 29, 2014, 4:59 PM
Comcast Forced Fees by Reducing Netflix to "VHS-Like Quality"
September 1, 2014, 7:18 PM
FCC Orders Advertisers to Cut Out That Racket, Turn Down Commercials
August 29, 2014, 12:49 PM
Latest Blog Posts
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information