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Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?

To: mas_ who wrote (256725)	10/18/2008 1:29:47 PM
From: Saturn V	Read Replies (1) \| Respond to of 275872

If the 30% profit rule is enforceable than that's what AMD will keep getting as well as 50% control ! What's not to like Not if you are the other partner ! As an investor I want my share to be roughly comparable to the control. Fifty percent control for 55% share would be acceptable. But if I was Abu Dhabi, I would be unhappy that I could contribute 70% capital, but with only 50% control. I may have second thoughts when I find that out. In such a situation I might prefer to bring in a third party to invest more. Typically if the Foundry company makes money, everyone will be happy, and it will easily get more money. However, when the business plan goes awry, and the company loses significant money, sparks begin to fly, and battles over ownership begin. It is also unusual to have 4 Directors. Generally companies prefer to have an odd number of Directors to avoid a deadlock. Abu Dhabi will have to be a very desperate investor to get into such a venture, with such ownership constraints. But will their enthusiasm continue after they have sunk billions and get no return, and need to pour billions more down the hole, with little control ? They probably will not care if oil is at $200/barrel, but at $30/barrel their thinking may be quite different.