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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 233.54-1.8%Nov 7 9:30 AM EST

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To: economaniack who wrote (219735)12/8/2006 8:56:40 PM
From: Sarmad Y. HermizRead Replies (2) of 275872
 
>> Unless there is evidence that AMD and nVidia explicitly agreed to continue the illegal pricing regime, there is no evidence of ongoing behavior which requires a remedy. The financial beneficiaries of the behavior would be the shareholders of ATI, not the shareholders of AMD prior or post the merger)

If you are saying that AMD will not be liable for any fines that are imposed, then you are totally, absolutely and completely wrong. Look at at the companies that have gone into bankruptcy as a result of acquiring other companies (in the 1990's) that had made asbestos products 50 years ago (under completely different ownership). You can also look at sales of land that has contaminated soil. The new owner is liable for cleanup, unless he has made an indemnification clause with the seller, as a condition of buying the land.

Obviously this is not a high monetary fine type of case. But if there is a fine, it would be paid by AMD, not the former shareholders of ATI. Unless AMD can successfully sue them on grounds of concealing or lying during purchase negotiation. Same would apply if refunds are required.
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