AMD can buy
AMD Shares Up More Than 10% In Just One Day When A Post Appeared On The FT Site.com linking to MergerMarket, according to which the company may be acquired by IBM.
Literally, the message posted by an analyst at JMP Securities read: Advanced Micro Devices and IBM could forge a more formal alliance in semiconductor manufacturing than their current partnership. This assumption arose during the dialogue between industry participants, analysts and MergerMarket. The deal could look like a strategic infusion of funds or even a merger of the respective division of IBM and AMD. According to information sources, this event may occur in the short term.
Recall that AMD is waging a fierce struggle with a much larger rival, Intel. Recently, AMD has been experiencing certain difficulties caused by the acquisition of the graphics manufacturer ATI Technologies and a bug found in a new generation of microprocessors. At the end of last year, the company received an investment of 622 million. Doll. from the Arab company Mubadala Development Company, but analysts believe AMD continues to be underfunded. If so, IBM’s involvement could play a decisive role in the company’s future. In addition to financial support, IBM has tremendous technological potential.
AMD shares up 10.3%, IBM up 2.6%. There are no official comments from AMD and IBM yet.
Sources: Barron’s, MarketWatch