AMD, ATI Closer to Sealing Deal

By Colleen Taylor -- Electronic News, 10/2/2006

Taiwan's Fair Trade Commission has given Advanced Micro Devices Inc. (AMD) the green light to purchase graphics chip maker ATI Technologies Inc.

In July, AMD confirmed weeks of buzz and speculation when it announced that it would acquire ATI for approximately $5.4 billion, in what AMD execs said was largely an effort to boost the company's market share increases against rival chip maker Intel. AMD has been flying high in recent weeks with the announcement of official collaborations with China's top-two PC makers, Lenovo Ltd. and Founder Technology, and a rumored pairing in the works with consumer electronics superstar Apple Computer.

The acquisition still remains subject to the approval of ATI shareholders, court approval of the plan of arrangement, approval by the Minister of Industry under the Investment Canada Act and other customary closing conditions. Subject to satisfaction or waiver of these conditions, the transaction is expected to be completed by October's end, the companies said.

In addition, AMD and ATI have agreed to a technical amendment to the plan of arrangement that clarifies that the "parent closing stock price" is the volume weighted average trading price, rounded to the nearest cent, of AMD's common stock for the 10 trading days immediately prior to, but excluding, the effective date.