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AMD issues stock notes for cash

Seeks to raise $300 million
Tue Nov 19 2002, 19:08
CASH-STRAPPED AMD is seeking to replenish its coffers, by flogging off $300 million in convertible senior notes. It's the second such sale the chipmaker has undertaken so far this year

The company says it expects to use the net proceeds from the offering for "general corporate purposes, including capital expenditures and working capital".

Despite the bullish assertions from CEO Hector Ruiz we reported yesterday, including the claim that AMD is serious in its stated intention to become the world's biggest chip-making business, the company has some serious work to do to to bolster its cash situation. It is currently off-loading 2000 workers in an effort to cut costs and Ruiz said yesterday the company was seeking a degree of "operational flexibility" along the road to economic health.

Ruiz claimed the company had the products to make a big impact in the server market with its upcoming Hammer line and said he expected the company's Mirrorbit memory to be a success with mobile phone makers in China.

However, Intel execs are unlikely to be losing sleep over handing over the top spot to AMD just yet. µ

 

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