AMD Fails To Reach Quorom For Shareholder Vote On Spinoff
February 10 2009 - 12:16PM
Dow Jones News
Advanced Micro Devices Inc. (AMD) failed Tuesday to gain enough
shareholder votes to approve the spinoff of its manufacturing
operations, delaying the process until later this month as it waits
for more investors to respond.
AMD shares fell 10% to $2.12. The stock is down more than 30%
over the past three months.
The chip maker received votes from 42% of eligible voters, said
AMD general counsel Harry Wolin, and needs to receive responses
from a majority of stockholders to approve the deal.
The shareholder meeting was adjourned until Feb. 18, to give
more time for investors to vote for the measure.
A shareholder vote is the last major condition required before
AMD can close a deal to spinoff the chip production side of its
business into a new venture, known as The Foundry Company, to be
owned jointly with Advanced Technology Investment Co., an
investment entity associated with the government of Abu Dhabi.
"We had set an aggressive schedule for the shareholder meeting.
In restrospect, it was maybe too aggressive, and we need a litte
more time for stockholders to participate in the vote," said AMD
spokesman Drew Prairie.
-By Jerry A. DiColo; Dow Jones Newswires; 201-938-5670;
jerry.dicolo@dowjones.com