Abu Dhabi Buys 8.1% Stake in Advanced Micro Devices

[mahatmakanejeeves]

Source: Wall Streeet Journal

By JOHN FLOWERS
November 16, 2007 11:27 a.m.

An investment arm of the Abu Dhabi government has bought an 8.1% stake in Advanced Micro Devices Inc. for about $622 million in cash, making the Persian Gulf emirate one of the chip maker's biggest shareholders.

The deal is part of a trend of Middle East nations, rich on the exploding cost of oil, to make their mark in global finance. Abu Dhabi's strategic-investment arm, Mubadala Development Co., has been gaining a foothold in high-tech sectors via recent investments and partnerships.

Earlier this week, Mubadala announced a deal with Northrop Grumman Corp. to collaborate on high-tech aerospace and aviation educational and training programs. And earlier in the year, the company bought a 7.5% stake in the Carlyle Group, a private equity firm known for its heavy investments in aerospace, defense, and high-tech industries.

In exchange for the investment, Mubadala will receive 49 million newly-issued shares of AMD at the Nov. 15 closing price of $12.70 a share. For its part, AMD will receive $622 million, minus about $14.6 million in reimbursed expenses.

Read more: http://online.wsj.com/article/SB119522317080395738.html?mod=googlenews_wsj

[blm]

1. They've bought into everything else why not one more? Aren't we all glad BCCI report

and its outstanding matters were deep-sixed by our wonderful Dem president throughout the 90s?

Letting Poppy and his cronies go was just such a wonderfully warm gesture, dontcha think?

Thankyou Bill. The Pied Piper plays for the Fascist King and too many in our party prance along.

[Trillo]

2. One corporation buying up shares of another corporation.

In the U.S., it used to be that corporations couldn't own shares in another corporation.

• Corporations could not own stock in other corporations nor own any property that was not essential to fulfilling their chartered purpose.

Much more at: http://reclaimdemocracy.org/corporate_accountability/history_corporations_us.html

[RogueBandit]

3. Guess Intel processors from now on

I guess I'll purchase Intel from now on. I liked the idea of buying the "alternative" processor, but this throws a whole new light on the matter. Of course, Intel is probably owned by the CIA front groups.

Anyone know of an open source processor to go along with Linux?

[Lance_Boyle]

4. No.

There is no such thing as an "open source" processor. Designs, sure. But fabs are physical things. Wanna homebrew one? The good news is that in only a few years' labor you can build the equivalent of an early 80s model 3086. If you're *really* talented.

The sentiment against AMD for accepting foreign investment is sheer xenophobic nonsense. Think Intel is wholly owned by red-blooded 'murkans? Or ANY multinational corporation for that matter?

This knee-jerk "oooh! bad arab money!" nonsense pisses me off.

The good news is that Abu Dhabi will make a killing on its ownership stake when tech rebounds. More power to 'em for taking on the short-term risk of supporting the #2 chipmaker.

[RogueBandit]

5. Thanks for the reply

I'm not against Arabs, or middle-easterners for that matter. I'm against the foreign corporations that want to own our ports...that's what pisses me off...and of course I unsentimentally extend that stream of piss on a whole country.

[Lance_Boyle]

7. I was in total agreement on the ports

But I see important differences between this case and that one.

First, there was a legitimate national security issue with the ports. I don't see any such issue with the chipmaker. Secondly, the ports deal was to involve a controlling stake - the UAE company was going to own, in effect, the whole shebang. Here, it's a measly 8%. More about investing to make money than about "investing" to outright own and control something. I'd be MUCH more worried if Intel wanted to buy 8% of AMD. ;-)

[Strelnikov_]

6. Closing the circle

That $800B current accounts deficit has to backed by something tangible.

[kineneb]

8. an obtuse way of dumping dollars?

the product of the chip maker is tangible, holding dollars that lose value by the day is not... on foreign influences- hey, the chips are all made overseas anyway, so what does it matter?