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AMD receives some much needed cash from the Middle East

Things haven't been going AMD's way ever since the acquisition of ATI Technologies in 2006. The company has been assaulted by Intel's Core-based processors in the desktop, server and notebook markets and its graphics offerings still are outgunned by NVIDIA -- even with the newly introduced Radeon HD 3870 and HD 3850.

As a result, the Sunnyvale, California-based company has been taking a beating as most recently observed in its Q3 2007 earnings report. AMD recorded a $226 million USD operating loss and $396 million USD net loss on revenue of $1.632 billion USD. $78 million USD of the loss was attributed to AMD's ATI acquisition.

However, things may finally be looking up for the company. Mubadala Development Company, a United Arab Emirates (UAE) government-funded investment firm based in Abu Dhabi, has acquired an 8.1 percent stake in AMD for $622 million USD. The company received 49 million shares at a price of $12.70. Despite the buy-in, Mubadala will not receive any board representation as a result of the deal.

AMD will receive a total of $608 million USD after repaying Mubadala $14.6 million USD in expenses. AMD plans to use the cash to invest in "research, product innovations and manufacturing excellence." The Business Review reports that some of the funds will be channeled into a $3.2 billion USD chip plant on the Luther Forest Technology Campus in Malta, NY.

"We proudly welcome Mubadala, a world-class investor, to the AMD shareholder family," said AMD Chairman and CEO Hector Ruiz. "This investment strengthens AMD’s ability to deliver customer-centric innovation and choice to the marketplace, creating greater value for all of our shareholders."

For its part, Mubadala's CEO and Managing Director, Khaldoon Khalifa Al Mubarak, added "AMD is a great fit for Mubadala's investment approach -- a spirited competitor and innovator led by a strong and visionary management team. We see significant opportunities for long-term growth and value creation."

Mubadala has been spreading money around quite frequently in recent months. According to Bloomberg, the investment firm captured a 7.5 percent stake ($1.35 billion USD) in the Caryle Group. Some of Mubadala's other investments include Ferrari SpA and SR Technics.

The investment from Mubadala couldn’t have come at a better time for AMD. AMD has faced an incredible amount of debt and not only record losses in Q3 as previously mentioned, but also during Q1 and Q2. The company has also seen the departure of two former ATI executives -- CEO and President David Orton and vice president of worldwide sales Rick Hegberg, as well as executive vice president and chief sales and marketing officer Henri Richard.



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RE: Copy of the contract.
By adam92682 on 11/16/2007 7:28:42 PM , Rating: 2
DEAR FRIEND,

IT IS WITH TRUST AND CONFIDENCE THAT I WRITE TO MAKE THIS URGENT BUSINESS PROPOSAL TO YOU.

I WAS ASSIGNED BY TWO OF MY COLLEAGUE TO SEEK FOR A FOREIGN PARTNER WHO WILL ASSIST US IN PROVIDING A CONVENIENT FOREIGN ACCOUNT IN ANY DESIGNATED BANK ABROAD FOR THE TRANSFER OF US$27,500,000.00 (TWENTY-SEVEN MILLION US.
DOLLARS ONLY) PENDING ON OUR ARRIVAL IN YOUR COUNTRY FOR UTILIZATION AND DISBURSEMENT WITH THE OWNER OF THE ACCOUNT.

THIS AMOUNT RESULTS FROM A DELIBERATE INFLATION OF THE VALUE OF A CONTRACT AWARDED BY OUR MINISTRY - THE FEDERAL MINISTRY OF AGRICULTURE (FMA) TO AN EXPATRIATE COMPANY. THE CONTRACT HAS BEEN EXECUTED AND PAYMENT MADE TO THE ORIGINAL CONTRACTOR, REMAINING THE OVER-INVOICED AMOUNT OF US$27.5 MILLION, WHICH WE WANT TO TRANSFER OUT OF THE COUNTRY IN OUR FAVOUR FOR DISBURSEMENT AMONG OURSELVES. THE TRANSFER OF THIS MONEY CAN ONLY BE POSSIBLE WITH THE HELP OF A FOREIGNER WHO WILL BE PRESENTED AS THE BENEFICIARY OF THE FUND.

AS GOVERNMENT OFFICIALS, WE ARE NOT ALLOWED TO OPERATE FOREIGN ACCOUNTS, AND THIS IS THE REASON WHY WE DECIDED TO CONTACT YOU. WE HAVE AGREED THAT IF YOU/YOUR COMPANY CAN ACT AS THE BENEFICIARY OF THIS FUND (US$27.5 MILLION).20% OF THE TOTAL SUM WILL BE FOR YOU FOR PROVIDING THE ACCOUNT WHILE 5% WILL BE SET ASIDE FOR THE EXPENSES INCURRED DURING THE COST OF TRANSFER OF THE FUND INTO YOUR ACCOUNT WHILE 75% WILL BE RESERVED FOR US.

WE HEREBY SOLICT FOR YOUR ASSISTANCE IN PROVIDING A CONVENIENT ACCOUNT NUMBER IN A DESIGNATED BANK ABROAD WHERE THIS FUND WOULD BE TRANSFERRED. WE INTEND COMING OVER THERE ON THE COMPLETION OF THIS TRANSFER TO SECURE OUR OWN SHARE OF THE MONEY.

PLEASE NOTE THAT WE HAVE BEEN CAREFUL AND HAVE MADE ALL ARRANGEMENTS TOWARDS THE SUCCESS AND SMOOTH TRANSFER OF THE FUND TO YOUR ACCCOUNT BEFORE ONTACTING YOU. FOR SECURITY REASONS AND CONFIDENCIALITY OF THIS TRANSACTION, WE DEMAND THAT YOU SHOULD NOT EXPOSE THIS PROPOSAL AND THE ENTIRE TRANSACTION TO ANYBODY.

WE ARE PUTTING SO MUCH TRUST IN YOU WITH THE HOPE THAT YOU WOULD NOT BETRAY US. OR SIT ON THIS MONEY WHEN IT IS FINALLY TRANSFERRED INTO YOUR ACCOUNT.BE REST ASSURED THAT THIS TRANSACTION IS 100% RISK FREE. IF THIS PROPOSAL IS ACCEPTABLE TO YOU,INDICATE YOUR INTEREST BY SENDING A FAX TO US INCLUDING YOUR BANK NAME & ADDRESS, ACCOUNT NUMBER, TELEPHONE AND FAX NUMBERS.

NOTE:OUR FORMER PRESIDENT OLUSEGUN AREMU OBASANJO COLLABORATED WITH PRESIDENT W. BUSH OF UNITED STATES OF AMERICA TO STOP THE JUNIOR RANKS OFFICERS FROM TRANSFERRING FUNDS OUT OF THE COUNTRY. HE SENT DIFFERENT PUBLICATION TO MANY COUNTRIES IN THE WORLD AS PROPAGANDA TO DISCOURAGE ALL GOVERNMENT OFFICIALS FROM TRANSFERRING FUNDS INTO AN OVERSEAS ACCOUNT TO AVOID AND SAVE GUIDES THE COUNTRIES ECONOMY.

APPARENTLY, SO THAT OTHER GOVERNMENT OFFICIALS WILL NOT BENEFITS FROM THESE OIL WINDFALLS {VENTURE} WHERE HE HAS BEEN A CULPRIT ALONE WITH HIS AIDES.

MORE DETAILS ABOUT THIS TRANSACTION WILL BE GIVEN TO YOU AS SOON AS WE RECEIVE YOUR POSITIVE RESPOND.

CONFIDENTIAL BUSINESS PROPOSAL, NOTE THAT THE PARTICULAR NATURE OF YOUR COMPANY'S BUSINESS IS IRRELEVANT TO THIS TRANSACTION. IF THIS TRANSACTION INTERESTS YOU, YOUR URGENT RESPONSE WILL BE APPRECIATED.

YOURS FAITHFULLY,

DR.IFEDIORAH A.RICHARD
EMAIL:drrichardifediora56@yahoo.com.hk


"What would I do? I'd shut it down and give the money back to the shareholders." -- Michael Dell, after being asked what to do with Apple Computer in 1997














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