RE: "If AMD was able only to post huge losses during this favorable (for them) time, wouldn't that essentially place them in the likely position of being acquired ? ...I think the AMD announcement was good news for Intel shareholders. Better to keep the devil we know."
Hi xstuckey,
I had been wondering if a large foreign player was toying with AMD for a bid by employing stalling tactics to reduce their potential negotiation power as losses incur, and if so, this would imply AMD is less likely to be bought out. On the other hand, housecleaning before an MNA, can make a company more attractive for approval by the acquiring company's shareholders, and if so, this would imply AMD is more likely to be bought out.
So, there are hypothetical arguments for both cases and directions. Who knows.
My opinion is, I don't think AMD is quite out of risk as an acquisition target. At $800M revenue and $4B market cap, it would only take a bid that's ~1.25X revenue to be equal to today's market cap. It seems distressed companies sell up to .75X to 1.25X revenue these days (and note how this matches AMD's market cap.) If AMD turns around, this could possibly increase to a potential of 2X in just a quarter or two. However, I think Sander's personality could be the best indicator of the future. I doubt he would ever put the entire company for sale. He doesn't appear to be the compromising type.
And, as an Intel investor I am glad, because like you, I would not be keen to see a new, fierce competitor via an MNA.
Amy J |
