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Print 14 comment(s) - last by ThisSpaceForRe.. on Oct 14 at 6:46 PM
So it's more official than it was before

ATI Technologies Inc. shareholders voted overwhelmingly today to approve the proposed acquisition of all outstanding common shares of ATI by an indirect, wholly-owned subsidiary of Advanced Micro Devices, Inc. (AMD). More than 99 per cent of the votes cast by shareholders were in favor of the transaction. No ATI shareholders have exercised rights of dissent in connection with the proposed acquisition.

AMD and ATI announced plans to merge back in July, which was pending government and shareholder approval. The Canadian Goverment gave the merger a passing grade through its anti-trust laws and regulations early September.

ATI will seek final court approval for the arrangement at a hearing on October 17, 2006. The transaction is expected to be completed during the week of October 23, 2006.

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Too bad for AMD
By klingon on 10/14/2006 2:30:38 AM , Rating: -1
Merger is likely to create a big drop in revenue estimates for Amd as a result of lower sales of chipset for processors by intel. This will eventually reduce AMD shares by say 6 to 7%.




RE: Too bad for AMD
By ComatoseDelirium on 10/14/2006 4:43:21 AM , Rating: 4
That's guesswork. Do you charge for your psychic readings?


RE: Too bad for AMD
By Spoelie on 10/14/2006 6:32:40 AM , Rating: 4
How can they lose sales they never had? ATi lost those sales, but they were not a part of AMD when they had them, so any sales they do have when they merge, are just added to those of AMD. Revenue estimates will rise, not fall.


RE: Too bad for AMD
By ThisSpaceForRent on 10/14/2006 6:46:29 PM , Rating: 2
There is some truth to what he is saying. I don't think revenue will drop, after all they will be adding the revenue of AMD and ATI together, but profits may very well drop. That is to be expected from a merger though, teething issues always occur as the two companies try to figure out how to integrate themselves together. I know AMD has stated that they don't intend to lay off any employees, but this is just good PR. There is bound to be overlap in the two organizations. They will inevitable cut the dead weight, but I doubt they'll lose any "talent".

I seriously doubt that Intel will drop ATI chipsets. If the chipset is a hot seller it would be counter-productive for them to drop them, simply because a good chipset helps Intel sell more processors. If I were an exec at Intel I would love to do that to AMD. AMD would be working against themselves, deliciously evil if you ask me.



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