AMD expected to announce ATI acquisition/merger on Monday, 8 am EST
AMD has informed analysts and journalists that chairman and chief executive officer Hector Ruiz and chief financial officer Bob Rivet will make a "significant corporate announcement" on Monday, July 24 at 8 am EST. While the company declined to provide details about this "announcement" on Sunday, it is widely believed that AMD will confirm its acquisition/merger plans of chipset and graphics chip company ATI.
According to information published by news organizations last Friday, the ATI deal will be valued at up to $5.6 billion for Markham, Ont.-based ATI. This would translate into a 22% premium over ATI's $4.58 billion market capitalization (as of 7/22).
AMD's stock traded at $17.91 on Friday, which gave the processor company a market cap of $8.67 billion. According to its most recent balance sheet, AMD has only $2.5 billion in cash available, which indicates that a stock transaction will be necessary to complete the deal.