A
AirRaid Mach 2.5
provided ATI shareholders approve
http://www.theinquirer.net/default.aspx?article=33223
http://www.theinquirer.net/images/articles/ortonruiz.jpg
AMD confirms ATI acquistion
Chip maker borrows $2.5 billion to 'transform the industry'
By INQUIRER newsdesk: Monday 24 July 2006, 10:15
AMD CONFIRMED its acquisition of ATI this morning, three days after the
INQUIRER let the cat out of the bag.
While we doubted the chip-maker could afford to buy out the Canadian
graphics chip firm, it turns out CEO Hector Ruiz went cap in hand to
his bankers and borrowed a cool $2.5 billion.
Ruiz crowed the deal would "reinvent our industry," as he appeared in
New york with ATI CEO Dave Orton.
AMD agreed to acquire all of the outstanding common shares of ATI for a
combination of $4.2 billion in cash and 57 million shares of AMD common
stock, based on the number of shares of ATI common stock outstanding on
July 21, 2006.
The total comes to $5.4 billion.
AMD said the deal was 'unanimously approved' by the board of directors
of each company, but it is still subject to ATI shareholder approval.
AMD said it had obtained a $2.5 billion term loan commitment from
Morgan Stanley Senior Funding, Inc. to help it finance the deal which
has captured the imagination of industry-watchers everywhere.
Crowed Hector: "Bringing these two great companies together will allow
us to transcend what we have accomplished as individual businesses and
reinvent our industry as the technology leader and partner of choice.
We believe AMD and ATI will drive growth and innovation for the entire
industry, enabling our partners to create differentiated solutions and
empowering our customers to choose what is best for them."
Dave Orton, President and CEO of ATI claimed all of the companies'
product lines would benefit. "Joining with AMD will enable us to
innovate aggressively on the PC platform, and continue to invest
significantly in our consumer business to stay in front of our
markets," he reckoned
Orton will join AMD to as an executive vice president of the ATI
business division, reporting to the AMD office of the CEO, comprising
Ruiz and president and chief operating officer Dirk Meyer.
But hundreds of other employees will lose their jobs as the new giant
seeks to cut operating expenses by around $75 million by the end of
2007.
The combination of AMD's processor expertise with ATI's 'strengths' in
graphics, chipsets and consumer electronics, would result in a "new and
more formidable company," the pair claim.
The combined company would have achieved approximately $7.3 billion in
total consolidated sales during the last four quarters with a workforce
of approximately 15,000 employees, according to the joint statement
today.
ATI will pay AMD a termination fee of $162 million should the deal yet
founder. The transaction is expected to be completed in the fourth
quarter of 2006.
http://www.theinquirer.net/default.aspx?article=33223
http://www.theinquirer.net/images/articles/ortonruiz.jpg
AMD confirms ATI acquistion
Chip maker borrows $2.5 billion to 'transform the industry'
By INQUIRER newsdesk: Monday 24 July 2006, 10:15
AMD CONFIRMED its acquisition of ATI this morning, three days after the
INQUIRER let the cat out of the bag.
While we doubted the chip-maker could afford to buy out the Canadian
graphics chip firm, it turns out CEO Hector Ruiz went cap in hand to
his bankers and borrowed a cool $2.5 billion.
Ruiz crowed the deal would "reinvent our industry," as he appeared in
New york with ATI CEO Dave Orton.
AMD agreed to acquire all of the outstanding common shares of ATI for a
combination of $4.2 billion in cash and 57 million shares of AMD common
stock, based on the number of shares of ATI common stock outstanding on
July 21, 2006.
The total comes to $5.4 billion.
AMD said the deal was 'unanimously approved' by the board of directors
of each company, but it is still subject to ATI shareholder approval.
AMD said it had obtained a $2.5 billion term loan commitment from
Morgan Stanley Senior Funding, Inc. to help it finance the deal which
has captured the imagination of industry-watchers everywhere.
Crowed Hector: "Bringing these two great companies together will allow
us to transcend what we have accomplished as individual businesses and
reinvent our industry as the technology leader and partner of choice.
We believe AMD and ATI will drive growth and innovation for the entire
industry, enabling our partners to create differentiated solutions and
empowering our customers to choose what is best for them."
Dave Orton, President and CEO of ATI claimed all of the companies'
product lines would benefit. "Joining with AMD will enable us to
innovate aggressively on the PC platform, and continue to invest
significantly in our consumer business to stay in front of our
markets," he reckoned
Orton will join AMD to as an executive vice president of the ATI
business division, reporting to the AMD office of the CEO, comprising
Ruiz and president and chief operating officer Dirk Meyer.
But hundreds of other employees will lose their jobs as the new giant
seeks to cut operating expenses by around $75 million by the end of
2007.
The combination of AMD's processor expertise with ATI's 'strengths' in
graphics, chipsets and consumer electronics, would result in a "new and
more formidable company," the pair claim.
The combined company would have achieved approximately $7.3 billion in
total consolidated sales during the last four quarters with a workforce
of approximately 15,000 employees, according to the joint statement
today.
ATI will pay AMD a termination fee of $162 million should the deal yet
founder. The transaction is expected to be completed in the fourth
quarter of 2006.