Advanced Micro Devices - Moderated (AMD) Message Board

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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 256.12

+0.5%

Oct 31 9:30 AM EDT

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To: aleph0 who wrote (219899)	12/10/2006 8:49:34 PM
From: Gopher Broke	Read Replies (1) of 275872

Is there a distinct disadvantage in having ATI/AMD as a merger rather than an aquisition ? A merger wouldn't have cost AMD a penny IMO. Is this just a question of "ego" in terms of "who" runs the company from then on ? .. or are there more serious factors involved ? Aren't you making an artifical distinction here? Either way two companies become one, with the merged cash and debts and common stock. So the aquisition could be viewed as simply a merger of AMD and ATI in conjunction with a substantial share repurchase of the shares in the merged company. Merger and acquisition are just different routes to the same end. So then the question becomes on of whether AMD should have retired as many shares as they did. Personally I am glad they did, because I think the diluted shares would have crashed without the support from the repurchase. Many people don't yet view the whole as even the sum of the parts, never mind significant more (IMO). Remember AMD has all ATI's cash and credit after the repurchase. Also they are not eliminating all ATI shares, there is an AMD stock portion to the exchange as well.

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