Monday, December 8, 2008

AMD Alters Investment Deal

Sunnyvale-based AMD said this morning that it has altered its investment deal with Mubadala Development Company. According to AMD, Mubadala will still purchase 58 million shares of its common stock as part of a joint venture, "The Foundry Company"--however, AMD will give Mubadala an additional 5 million warrants to purchase AMD stock, plus the price that Mubadala will pay for AMD's stock will by the lower of the average closing price per share of AMD's common stock during the 20 trading days prior to and including December 12, or the average closing price of AMD's common stock on the 20 days prior to the closing date of the transaction. AMD has also reduced the multiplier on the enterprise value of its manufacturing assets to be contributed by AMD, reducing AMD's final stake in the new firm to 34.2 percent.