AMD delays vote on Abu Dhabi deal

Advanced Micro Devices (AMD) has postponed a key shareholder vote to approve its $5.7 billion joint venture with Advanced Technology Investment Company (ATIC), owned by the government of Abu Dhabi.

"We pursued an extremely aggressive timeline to close on the shareholder vote," said AMD spokesman Mike Silverman,"…in retrospect, we probably moved a little bit too fast."

ATIC recently negotiated for a 66% in the joint venture that will result in a new business known as The Foundry Company. Another Abu Dhabi entity, Mubadala, is also in the mix, pitching for 11% of AMD.

The meeting, which was scheduled to take place two days ago, was adjourned to give AMD more time to “solicit proxies from its stockholders to establish the requisite quorum,” a company statement clarified.

A majority of AMD’s shares need to be present to establish a quorum but only 42% voted by February 10th. Of the votes cast, 97% were in favour of the deal.

Gaith Kader, managing director at AMD for Middle East, Africa and Turkey, revealed to itp.net that all parties remain committed to the deal and that the transaction is expected to close “within the next few weeks.”

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READERS' COMMENTS

strange
Posted by wise on Monday 16 February 2009 at 20:53 UAE time


why the hurry abu dabi? the longer you wait the better the price, AMD has been slipping like most of the high-tec companies, so again why the hurry

deal got sour
Posted by rajeev bajpai, new delhi, india on Thursday 12 February 2009 at 20:25 UAE time


Is it not the case where the interested parties are seeking time to settle themselves and try to wriggle out of the deal - as now the spokesperson seems to admit in a maze of words - an aggressive timeline. The fact remains that the deal as envisages has not been consummated owing to financial reasons, and not otherwise. One need not forget the oil prices from the time when the deal was struck to now. anyways, i hope that what gaith kader said - all parties remain commited to the deal ....the only pointer that all is not right is the added - expected to close within the next few weeks............wish the weeks are closer to today !!

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