AMD Gains on Speculation It May Be Takeover Target
Advanced Micro Devices Inc., the second-largest maker of processors for personal computers, rose in New York trading on speculation that the departure of top executives has made it an acquisition target.
“There is no management team there,” said Patrick Wang, an analyst at Wedbush Securities in New York. There is some “chatter” that the company is up for sale, he said. “It’s a far- fetched possibility.”
Last week, Sunnyvale, California-based AMD said Chief Operating Officer Robert Rivet and strategy head Marty Seyer are leaving the company. Their departures follow the exit of Chief Executive Officer Dirk Meyer, who resigned Jan. 10 after a dispute with the board over progress in winning back server market share and a lack of offerings for the rapidly growing mobile computer market.
AMD gained 35 cents, or 4.2 percent, to $8.63 at 4 p.m. in New York Stock Exchange composite trading. The shares have gained 5.5 percent this year.
Chief Financial Officer Thomas Seifert is acting as interim CEO. He has said he doesn’t want the promotion to be permanent.
There’s also some speculation that computer makers will announce plans to build machines based on AMD’s new Bulldozer chip, Wang said.
AMD competes with Intel Corp. in the market for personal- computer processors.
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