AMD stung by Lehman default
AMD SHAREHOLDERS learned late Friday that Lehman Brothers' September bankruptcy has forced the chipmaker to abandon a complicated long-term stock value protection deal.
Chimpzilla's deal with the now-defunct Wall Street investment bank would have protected AMD's shareholders from eventual stock dilution by $2.2 billion in convertible debt that the company issued in 2007. Lehman Brothers defaulted after it imploded on September 15th.
AMD had paid Lehman Brothers $182 million to buy up enough AMD shares before 2015 to offset the raft of new shares that will be created by its convertible senior notes when those come due. Like Lehman's other creditors, AMD is trying to recover its money from the deal.
Among the chip company's options now, it can slowly buy up $2.2 billion of its shares itself. µ
L'Inq
Business Week
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AMD Has Only 600,000,000 Shares in Total, So actual value about $1.5 Billion Total, at Present. Clever Way Lower Price Snuffs Out Big Investors.
On XP It really is Too Bad Hardware Didn't respond to need to of Vista Bandwidth, when it bacame known that XP machines Never could do Vista job, in January 2006 White Paper, That has been My Posted Position Whole Time, & degraded for it.. Seems Microsoft is Getting bit of Pinche & So is Retail Public being deprived Best O/S available. STeWie Drashek
AMD never had that a clever hand in financials. Sad to see a good company stumbling for such simple reasons.