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Thursday, 22 March 2007 16:14

AMD asks shareholders for more money

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To pay for CPU price cuts


AMD is looking to financial markets in a bid to offset loses caused by its price cuts.

According to the International Business Times, research analyst Eric Gomberg of Thomas Weisel Partners claims that AMD is planning more price cuts as it continues its price war with Intel. He predicts a cut of about 30 percent in April.


Gomberg said that while this will boost demand and help AMD out of a financial hole the company's product mix and stale inventory will cause headaches for a long time.


However it is having trouble over financing its program of price cuts and he thinks that AMD will have to go cap in hand to a private equity firm for finance. Gomberg is predicting that there will have to be a convertible deal worth around $1 billion. In a meantime Intel feels good and is super price aggressive.  


You can read more about it here.  

 

 

Last modified on Thursday, 22 March 2007 17:25
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