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

To: Joey Smith who wrote (31353)	4/7/1998 11:11:00 PM
From: StockMan	Respond to of 1571281

Joey, What rumor. AMD categorically denied that IBM would throw away money at AMD's. Stockman

To: Joey Smith who wrote (31353)	4/8/1998 10:36:00 AM
From: Xpiderman	Read Replies (2) \| Respond to of 1571281

Currently, there is no evidence that IBM were to make a significant (say 5% of market value of either company ) investment in AMD. So far neither company has filed any notice to SEC to make this kind of investment. AMD has already filed documents with the Securities and Exchange Commission to raise an additional $1 billion through a secondary stock offering or through debt financing. If the secondary stock offering priced at $30, then AMD need to issue 33.3 million additional shares or about 23.4% of current diluted shares. Right now computer manufacturers are starting to choose between Intel's low-cost Celeron, a version of the Pentium II, and AMD's K6 for systems priced at less than $1,000. The choice is particularly critical this time around because the Pentium II is connected to a PC through the same kind of connector that a peripheral card uses. AMD's K6 uses a more traditional but disappearing socket design. Manufacturers are not expected to design low-end systems around two different architectures. The Celeron/Slot-1 Pentium II chips will usher in an era of enhanced channel configuration, in which resellers will begin install the microprocessor to motherboard. The Slot-1 design assured the installation quality because all the parts are contained.