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Thu 19 Feb 2009 03:00 PM

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AMD spin-off plan approved by shareholders

Just over 50% of shareholders voted on the landmark Abu Dhabi deal

Advanced Micro Devices shareholders have approved a joint venture with technology investment firm Advanced Technology Investment Company (ATIC), owned by the government of Abu Dhabi.

The news comes a week after AMD failed to get a majority of voters needed to rule on the decision. At the time, only 42% of the company’s shareholders voted, of which 97% were in favour of the deal.

On Wednesday, AMD reported that just over 50% of shareholders voted in the landmark meeting, with 94% supporting the joint venture known as ‘The Foundry Company’. Both companies now expect to close the deal by March 2nd.

The Foundry Company will be headquartered in Silicon Valley with R&D and manufacturing teams in New York, Dresden and Austin.

Shareholders also gave the go-ahead for issuing 58 million AMD common shares to Mubadala Development Co., a joint stock company whose sole shareholder is the Abu Dhabi government.

This brings Mubadala’s stake in AMD to more than 16%, with the company also being offered warrants of 35 million more shares if desired.

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