Advanced Micro Devices - Moderated (AMD) Message Board

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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 213.50

+6.2%

3:59 PM EST

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To: Charles R who wrote (17000)	11/1/2000 1:39:17 AM
From: Petz	Read Replies (2) of 275872

How to do a flash spinoff? That was a very good post, Chuck. I'm afraid though that if AMD spun off its flash, and Fujitsu did not simultaneously spin off their share, then Fujitsu would just buy out the AMD spinoff during the first down cycle of the flash business. Aside from that, if the AMD spinoff is part of a Fujitsu joint venture, then its PE may be dragged down from what a pure play would get. Therefore, for it really to work, Fujitsu would also have to spin off its share simultaneously. If this took place right now, I would hope that AMD and Fujitsu would retain a percentage ownership, say 20% of the new stock, which they could offer to the public at some future time when flash memory has a higher reputation (i.e., PE) on Wall Street. A $billion cash might come in handy in a couple years. Depending on whether Fab 25 is already running flash, it might make sense to delay such a transaction until AMD really needs both fabs filled to capacity for the CPU business. Petz

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