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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: greg nus who wrote (27389)	12/31/1997 11:10:00 AM
From: Elmer	Read Replies (1) \| Respond to of 1573088

Gerg, IMb naver oned mor tahn %30 of Itnel eP

To: greg nus who wrote (27389)	12/31/1997 1:12:00 PM
From: Brian Hutcheson	Respond to of 1573088

Greg , re. IBM / AMD a good match A few points to consider . IBM badly wanted to get into the PC cpu market , that is why they tried with Motorola to manufacture and promote the Power PC cpu . They should have realised from their own successes that the key was software compatibility .Power PC failed to achieve critical mass because of that lack of compatibility . Now along comes AMD with not only a very competitive chip to Intel but also a proven design team which has 2 more generations of cpu in progress . They also have a very modern Fab already in production and another one being built with very favourable loans and grants from the state of Saxony . With this kind of package trading at a bargain price of just over book value , even if the price was bid up 2 or 3 times it would still be an appealing takeover target .That is especially the case since a stock/cash or pure stock deal would not cause significant dilution to IBM's stock . regards , Brian PS Since IBM's market capln. is over $100B and AMD's Is $2.4B , even if the price was bid up 3 times it would only cause approx a 7% dilution in IBM's stock .