AMD Says It Isn’t Actively Pursuing a Sale of the Company
Nov. 14 (Bloomberg) -- Advanced Micro Devices Inc., the second-largest maker of personal-computer processors, said it isn’t actively pursuing a sale of the company or a significant sale of assets.
“AMD’s board and management believe that the strategy the company is currently pursuing to drive long-term growth by leveraging AMD’s highly differentiated technology assets is the right approach to enhance shareholder value,” Drew Prairie, a spokesman for AMD, said in an e-mailed statement yesterday.
The statement came after Reuters reported that AMD hired JPMorgan Chase & Co. (JPM) to explore options, including a potential sale of the company or its patent portfolio. AMD shares fell 7.7 percent to $1.93 at the close in New York. Yesterday they surged as much as 18 percent following the Reuters report, then pared gains to close up 5 percent.
Last month, AMD gave a forecast for fourth-quarter sales that fell short of analysts’ estimates and said it would cut 15 percent of its staff, citing weak demand across all product lines in a challenging economic environment.
The revenue projection put the Sunnyvale, California-based company on course for its fourth consecutive quarterly sales decline. That led analysts such as Sanford C Bernstein & Co.’s Stacy Rasgon to predict that, if the trend continues, cash reserves may fall short of what AMD says it needs. The stock has dropped 64 percent this year.
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