It appears that after two months of delays and rumors regarding the Advanced Micro Devices and ATI Technologies take over business, several undisclosed sources said that the acquisition is already approved by ATI's board of directors and AMD is to pay no less than $5.5 or $5.6 billion.
"The board of directors at Sunnyvale, California-based AMD have approved a takeover offer, according to an investment banker familiar with the talks, claims The Globe and Mail news-paper. Other sources in the financial industry said AMD executives have been spotted at ATI's Markham, Ontario head office, the same source reports," writes X-bit Labs.
Advanced Micro Devices intends to take over ATI Technologies in order to provide all-in-one platform solutions as its challenger Intel Corp does, according to RBC Market Capitals analyst Apjit Walia.
"The synergies of this seem consistent with the recent announcements by AMD to significantly increase capacity over the next few-years. We believe ATI is a rare-buy in the semiconductor space right now given the near-term tie-up dynamics," Walia said.
On the other hand, there have been a lot of rumors on the market about several microprocessors companies that want to take over graphics specialized manufacturers, so AMD would be the first one to confirm these chitchats. "This tie-up might make sense for AMD at this juncture but we don't think Intel should pursue tying-up with graphics companies and should instead look at the communications-space," Walia added.
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