AMD Up on Report That IBM Could Buy It

Advanced Micro Devices (AMD) shares are higher following a report carried on FT.com from MergerMarket which said the company could be acquired by IBM.

An excerpt:

Advanced Micro Devices and IBM may establish a more formal semiconductor tie-up than their current partnership, specualted industry sources and analysts in conversations with MergerMarket. A deal could see IBM’s microelectronics division merge with AMD at some point, possibly in the near term, said the sources.

AMD today is up 69 cents, or 10.1%, at $7.52. IBM is up $4.84, or 4.8%, at $106.06.

Comments

[yourbestfri...:]

ChannelWeb debunks this rumor, and twists it back on itself:

www.crn.com/hardware/2...

It looks like AMD could have to pay IBM to renew their process-development contract by the end of this year.

2008 Jan 25 06:18 PM

[Ames Tiedeman:]

If IBM buys AMD it will have to be for no less than 15. Shareholders need to rebel it it is a paltry 8 or 10 dollar offer. Once AMD gets it s expenses in order this thing can move back into the high 20's. This will take 36 months or longer. Getting back to 40 will require major changes, however.

2008 Mar 09 12:46 PM