AMD to raise $700 million in share sell

CHIP FIRM AMD said in a filing to the SEC that it wants to raise $700 million of shares.

The firm's share price was $12.70 when the NYSE closed yesterday.

The filing said that AMD expected Intel to maintain its dominant position in the market place, and it only started shipping its first quad core products during the third quarter.

AMD said its capital expenditures are such that it may face a cash flow problem. It plans to spend $300 million on capex during this quarter.

It it can't generate sufficient revenues it will face a cash shortfall.

Its consolidated debt is currently around $5.3 billion. In the prospect it said AMD cannot be certain that its acquisition of ATI will bring the full benefits it originally anticipated.

It has also made pledges to the Canadian government, and its ATI business is heavily dependent on a small number of customers. One of these handset customers has bought less than it expected.