Sign In
SHARE
Email Confirmation
Abu Dhabi Doubles Down, Buys Chips
by Megan Barnett
Nov 16 2007
Nov 16 2007
Abu Dhabi's Mubadala takes a stake in A.M.D.
Last Trade:Change:
Summary:
A global semiconductor company with manufacturing, research and development, and sales and administrative facilities throughout … View More
Last Trade:Change:
Summary:
The Company makes, markets and sells integrated digital technology products, integrated circuits, for computing and communications industries. View More
Dr.Hector de J. Ruiz
Industry:
Technology
Biography:
Dr. Ruiz, 61, is Chairman and Chief Executive Officer of Advanced Micro Devices, Inc. Dr. Ruiz joined Advanced Micro Devices, … View More
The embattled chipmaker 
A.M.D. now has some Middle Eastern money to help it in its fight against rival Intel.
The Mubadala Development Company, which is the investment vehicle of the government of Abu Dhabi in the United Arab Emirates, has invested $622 million for an 8.1 percent stake in the chipmaker A.M.D. The news was first reported by the Financial Times.
"This investment strengthens A.M.D.'s ability to deliver customer-centric innovation and choice to the marketplace, creating greater value for all of our shareholders," said A.M.D. chief executiveHector Ruiz in a statement.
Mubadala paid $12.70 per share for its stake, which was A.M.D.'s closing price yesterday. Its share price was unchanged in morning trading.
The Abu Dhabi investment firm will not receive a board seat, and its investment is considered noncontrolling.
A.M.D., which is a distant second behind semiconductor giant Intel, has waged a David versus Goliath battle in recent years. A.M.D. gained ground when it beat Intel to market with improved technology several years ago, but it fell behind in recent quarters after Intel slashed its prices. In the third quarter, A.M.D. lost $396 million, and it is expected to remain in the red for the coming quarters.
A.M.D. now has some Middle Eastern money to help it in its fight against rival Intel. The Mubadala Development Company, which is the investment vehicle of the government of Abu Dhabi in the United Arab Emirates, has invested $622 million for an 8.1 percent stake in the chipmaker A.M.D. The news was first reported by the Financial Times.
"This investment strengthens A.M.D.'s ability to deliver customer-centric innovation and choice to the marketplace, creating greater value for all of our shareholders," said A.M.D. chief executive
Hector Ruiz in a statement.Mubadala paid $12.70 per share for its stake, which was A.M.D.'s closing price yesterday. Its share price was unchanged in morning trading.
The Abu Dhabi investment firm will not receive a board seat, and its investment is considered noncontrolling.
A.M.D., which is a distant second behind semiconductor giant Intel, has waged a David versus Goliath battle in recent years. A.M.D. gained ground when it beat Intel to market with improved technology several years ago, but it fell behind in recent quarters after Intel slashed its prices. In the third quarter, A.M.D. lost $396 million, and it is expected to remain in the red for the coming quarters.
| Read All