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

To: StockMan who wrote (34181)	7/9/1998 7:12:00 PM
From: Dave	Read Replies (2) \| Respond to of 1580446

My apologies if this has already been posted.... cbs.marketwatch.com AMD calls rise on takeover thoughts By Brenon Daly, CBS MarketWatch Last Update: 05:32 PM July 09, 1998<Picture>StockWatch NEW YORK (CBS.MW) -- Calls on Advanced Micro Devices were active Thursday as traders speculated that a PC maker might buy the slumping chipmaker. "There's a rumor of a takeover," said Jeff Girtler, a trader for Group 1 at the Pacific Exchange. "When the stock gets hit like this, people think, 'Hey, it's getting a bit cheaper." Advanced Micro Devices (AMD) shares fell to its lowest level in almost two years on Thursday after the company posted a wider-than-expected second-quarter loss. Shares closed off 2 3/8 at 15 3/4. See full story. More than 2,200 July 20 calls (AMD=GD) and 1,600 contracts of the August 20 calls (AMD=HD) traded on Thursday. Interestingly, the 1,600 trades of the August paper comes on an open interest of just 2,000 contracts, meaning that fourth-fifths of outstanding contracts changed hands. Makers of personal computers, such as Gateway 2000 or Compaq, have been named as potential suitors, Girtler said. In owning a chip plant, the PC makers wouldn't have to rely on chips from Intel, which is currently facing a federal investigation because of alleged heavy-handed competitive tactics. There is also speculation that chief executive W.J. Sanders will be tossed out of the top post. Over the past year, shares have shed nearly two-thirds of their value. "Sanders is a visionary, but he's not really focused on the business anymore," Girtler said.

To: StockMan who wrote (34181)	7/10/1998 12:31:00 AM
From: High Desert	Respond to of 1580446

The writer of the Vantis spin off article was misinformed or misinterpreted some information. The plan at AMD has been to spin Vantis off as a separate company since the early part of 1996. I know this for a fact because I helped to plan the move! This was not done to raise cash but was done as a strategic move due to the nature of the programmable logic device business - a business for smaller companies, much smaller than AMD. Just a clarification of the real facts here.