http://albany.bizjournals.com/albany/stories/2007/10/15...y36.html?jst=b_ln_hl

Advanced Micro Devices Inc. said Friday it was notified of a "mini-tender" offer by TRC Capital Corp. to purchase up to 5 million shares of its stock for $13.25 a share.

AMD (NYSE: AMD) of Sunnyvale, Calif., said the purchase would represent about .90 percent of its outstanding shares, and would be more than 5 percent below the $14.02 per share closing price on Oct. 10, the day before the offer, and about 9 percent below the $14.55 per share closing price on Oct. 18.

AMD said it "does not in any way recommend or endorse the TRC Capital Corp. 'mini-tender' offer, and AMD is in no way associated with TRC Capital Corp., the 'mini-tender' offer or the offer documentation."

On Thursday AMD reported a bigger than expected third quarter loss of $396 million, or 71 cents a share, compared to net income of $136 million, or 27 cents a share in the same period last year. The company said that included a negative impact of $120 million, or 22 cents a share, due in part to acquisition-related charges.

AMD said TRC Capital has a history of making "mini-tender" offers for the shares of other companies for its profit.

"These offers are devised to seek less than 5 percent of a company's outstanding shares, thereby avoiding many procedural and disclosure requirements of the Securities and Exchange Commission because they are below the SEC's threshold to provide such disclosure and procedural protections for investors," the company said.

AMD has announced plans to build a $3.2 billion chip plant in Saratoga County.

This artcile in Friday's TU says AMD's 3Q losses were less than expected. http://www.timesunion.com/AspStories/story.asp?storyID=631368


AMD beats sales forecast
Company's top executive upbeat about quarterly results, mum on Saratoga

By IAN KING, Bloomberg News
First published: Friday, October 19, 2007

Advanced Micro Devices Inc., which is planning a $3.2 billion computer chip factory in Saratoga County, reported a smaller-than-expected loss after sales beat estimates.


The third-quarter net loss was $396 million, or 71 cents a share, compared with a profit of $136 million, or 27 cents, a year earlier. Sales rose 23 percent to $1.63 billion, beating the $1.52 billion average estimate in a Bloomberg survey.

Chief executive Hector Ruiz is struggling to return his company to profitability after product delays forced him to cut prices to compete with newer processors from main rival Intel Corp.

"We have made solid progress," Ruiz told analysts Thursday. "We still have much more important work to do."

AMD's financial health is a concern to Capital Region business and economic development officials, who hope AMD's plan to build a "chip fab" here will help transform the region.

Under a $1.2 billion incentive agreement with New York state, AMD has until July 2009 to decide whether to build the plant in Malta.

Earlier this week, Intel said its third-quarter profit rose 43 percent on strong demand for PCs worldwide.

In the conference call, Ruiz did not address AMD's plans for Luther Forest.

AMD has said it plans to employ an "asset-light" strategy to help reduce costs, and it's unclear how that strategy will impact its plans for New York.

Ruiz declined to talk about any of the specifics of asset-light, saying nothing will be revealed "until we put that plan into action."