Advanced Micro Shareholders Approve Manufacturing Spinoff
February 18 2009 - 11:59AM
Dow Jones News
Advanced Micro Devices Inc. (AMD) shareholders Wednesday
approved what is the final step toward a spinoff of the company's
manufacturing operations, in a deal designed to improve AMD's
balance sheet and refocus the company on designing chips instead of
making them.
More than 94% of shareholders voted to allow AMD to issue stock
and warrants that will effectively let the company spin off its
manufacturing facilities into a joint venture known as the Foundry
Co., formed with the Advanced Technology Investment Co., an Abu
Dhabi investment fund.
The deal includes an investment by Mubadala Development Co.,
also of Abu Dhabi, of roughly $800 million.
Shares of AMD traded recently at $2.46, up 9 cents, or 3.8%.
Last week, the Sunnyvale, Calif., maker of chips for computers
and servers postponed a scheduled shareholder meeting because the
company failed to meet the required 50% quorum.
Roughly 97% of the votes cast before the earlier meeting were in
favor of the deal.
-By Jerry A. DiColo; Dow Jones Newswires; 201-938-5670;
jerry.dicolo@dowjones.com