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Politics : Formerly About Advanced Micro Devices

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To: Buckwheat who wrote (25676)11/8/1997 3:19:00 PM
From: Paul Engel  Read Replies (1) of 1579486
 
Buckwheat Re: "I would like to hear some discussion on the prospects of an AMD buy-out (hostile or otherwise)"

I think AMD should be able to make a buy-out takeover bid for Intel. I would guess that AMD does not have quite enough money in the bank for a cash offer. However, assuming current pricing, AMD would have to issue about 6.4 BILLION new shares of AMD stock for a stock swap - again assuming no premium for Intel above its current market capitilzation.

I don't think AMD shareholders would mind this dilution - considering they can pick up 8 or 10 wafer fabs without yield problems.

And I'm sure Andy Grove would welcome the opportunity to work for such a brilliant manager as Jerry Sanders.

Paul
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