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AMD fails to get support for spin-off deal


Stockholders abstain from vote, will try again next week


Chipmaker AMD was unable to push through its spin off plan, as it didn't get enough support from its stockholders.

The deal was voted on during a stockholder meeting yesterday, and although 97 percent of present stockholders voted in favour, they made up for only 42 percent of AMD's shares. This wasn't enough to reach as quorum, so AMD will have to put the proposed deal under vote again.

AMD will try to push the deal through again on February 18th. Under the deal the spin-off, unimaginatevly dubbed Foundry Co., would take over AMD's production assets, and AMD would hold a 34 percent stake in it, while the rest would be owned by an Abu Dhabi government investment group.

AMD has plenty of time to get the needed support for the spin off deal, as New York State's offer to subsidize its new plant in Malta, NY, to the tune of 1.2 billion, expires in June.

Also read:

AMD submits plans for its New York fab 

Last modified on 11 February 2009
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