AMD delays vote on Abu Dhabi deal
Company spokesperson admits that they ‘probably moved a little too fast’
Advanced Micro Devices (AMD) has postponed a key shareholder vote to approve its $5.7 billion joint venture with Advanced Technology Investment Company (ATIC), owned by the government of Abu Dhabi.
"We pursued an extremely aggressive timeline to close on the shareholder vote," said AMD spokesman Mike Silverman,"…in retrospect, we probably moved a little bit too fast."
ATIC recently negotiated for a 66% in the joint venture that will result in a new business known as The Foundry Company. Another Abu Dhabi entity, Mubadala, is also in the mix, pitching for 11% of AMD.
The meeting, which was scheduled to take place two days ago, was adjourned to give AMD more time to “solicit proxies from its stockholders to establish the requisite quorum,” a company statement clarified.
A majority of AMD’s shares need to be present to establish a quorum but only 42% voted by February 10th. Of the votes cast, 97% were in favour of the deal.
Gaith Kader, managing director at AMD for Middle East, Africa and Turkey, revealed to itp.net that all parties remain committed to the deal and that the transaction is expected to close “within the next few weeks.”