Monday, July 24, 2006

Hit #106

AMD confirmed today that it is buying ATI (ATYT) for around $5.5 billion. This offer, of $20.47 is a premium of 32.1% over my average cost of $15.49/share.

I had posted in detail earlier when news of the deal leaked out. In that post, I had hoped that this would not be a cash deal, as it would be bad for AMD. Surprisingly, the deal is mostly in cash, $4.2 billion to be exact.

As expected, Moody's has announced that it is reviewing AMD's credit rating. AMD shares have been bit, and for long-term believers in AMD, this is a good entry point.

Previous hit - Petco (#105)


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