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AMD gets shareholder approval for manufacturing spin-off, finally

by Scott Bicheno on 18 February 2009, 17:27

Tags: AMD (NYSE:AMD)

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Got there in the end

There will be relief in Austin today as AMD was finally able to convene the shareholder meeting and secure the final approval needed to proceed with the spin-off of its manufacturing operations into a new subsidiary, of which it will be a minority owner.

This was meant to happen eight days ago but AMD had been unable to corral 50 percent of shareholders into voting, a pre-requisite for even holding the meeting.

This was all rather embarrassing for AMD, which confessed to giving itself too aggressive a timescale in which to arrange the meeting. It also saw a plunge in AMD's share price, from which it has subsequently recovered.

Anyway, AMD got it right second time and now expects the transaction to close by 2 March and ‘The Foundry Company' to be formed. That is providing it can resolve the fly in the ointment that is Intel's questioning of this move with respect to the cross-license agreement between the two companies. On that matter AMD is in good company.

 



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Better late than never…. Saying seems to now be working for AMD