“AMD HAS BEEN FORCED to delay a vote which would have decided the spin-off of the firm’s fabs into the separate Foundry Co, after a specially called shareholder meeting left AMD short of the number of votes it needed.Back in October, AMD announced it would be freeing itself from the burden of its fabs, teaming up with the oil-rich sheiks of Abu Dhabi to form the joint venture, The Foundry Co.
AMD spinner, Mike Silverman, admitted the firm may have tried to push ahead too quickly in attempts to complete the $5.7 billion transaction, saying that the “extremely aggressive timeline” was probably “a little bit too fast.”
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Fab fight
AMD’s plans to strip down and go fab-less have run into a small snag in the form of a vote which fell short of a quorum. Only 42% of shareholders showed up to vote yesterday, though 97% of those who voted did vote in favour of the fab spin off to the Foundry Co. Currently the next vote is scheduled for next Wednesday, Feb. 18th, and we shall see if enough shareholders come forward to vote or if AMD’s fab lite plan will be delayed yet again. See the Inquirer for information on how the markets responded to the news.