This sounds VERY plausible (IBM or Compaq going to invest $1 billion in AMD). You are correct, at one time IBM made a large investment in Intel (in fact, I think that they owned 15% of the entire company, with an option to buy more, and it wasn't that long ago, either, it was in the 90's -- then they sold it; talk about bad moves).
Unlike an open market sale, if I were an AMD investor, I'd probably view this as positive, notwithstanding the dilution. Could lead to a complete buyout at a later date, a way to get rid of Jerry (or at least control him), all probably good for AMD, and unclear in terms of their impact on Intel (if PII kills socket 7 in the next 6 months, it's probably not going to matter).
Vicki, you might want to reconsider your short position. |
