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.

Related Stories

The great vendor tool ‘certification’ con

Open up Markets with New Payment Options

Live Video Chat with Social Media Celebrities—Who Are These New Celebs?