Today was the D Day for the separation of AMD into two… or was it? Believe it or not, but the stockholders failed to bring enough votes on the proposal of splitting into The Foundry Company and AMD.
What happened? AMD’s leadership had to receive a Yes vote from more than 50% of all stockholders. Sadly for AMD’s management, the company had a glitch in the system and sent out necessary 400-page documentation only in the dying days of January. We are unsure why this happened, especially with the vote as important as this one.
By this morning, AMD received 42% of all stockholders, with 97% of those giving an approval for the split. However, not all is bad. At least we got a glimpse into the future, and we can now say that it is 99.99999999….n% certain that AMD will split in two. We just have to wait until February 18, 2009. My personal comment would probably be that AMD’s stockholders went on AMD’s site and tried to get extra information by accessing Manufacturing Technologies page in About AMD section… and were greeted by 404 Error. Then again, according to the same AMD.com webpage, we’re actually in 2007, given the state of their Formula One World Championship calendar.
With expected Yes vote on February 18, 2009 – we can mark the date as the birthday for the new company, Mubadala Abu Dhabi/ATIC powered The Foundry Company (Arab Micro Devices) and the new and lean Advanced Micro Devices. Needless to say, analysts with whom we spoke weren’t exactly ecstatic over this SNAFU.
P.S. In its current state, largest shareholders of AMD are Oppenheimer Funds Inc. (13.47%), Mubadala Development Company (8.05%, Mubadala Abu Dhabi, same fund that owns 5% of Ferrari s.p.a), Maverick Capital Ltd. (5.93%), Galleon Management L.P. (5.33%) and Vanguard Group Inc. (4.23%). Expect an “interesting” change once the vote passes.