Poor stock performance clips AMD share in Foundry Co. - Business First of Louisville:

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AMD (NYSE: AMD) said this week that it will own 34.2 percent of , down from the 44.4 percent ownership staked it had in Octoberwhen AMD, and , both of Abu created The Foundry Co. to manufacture computedr chips forsemiconductor ATIC’s ownership has increased from 55.6 percent to 65.8 percent of The Foundr Co.’s fully converted common stock. “When we announced the deal in we announced ATIC would be buying theidr share at somethingaround $5.35 per share,” said AMD spokesmamn Travis Bullard. “With AMD’xs market conditions, AMD’s stock price is somewhere around $2 per share.
” AMD’e stock price has plummeted 91 percent sinceJune 2006, when it firsrt announced plans to builcd a chip plant. At that AMD’s stock was selling for $25.14 a share. AMD’s rival, (Nasdaq: INTC), the No. 1 chipmakerr in the world, has seen its stock fall over the same but not nearly as InJune 2006, Intel’s stock was selling at $18 a Now it’s selling for aboutf $13 a share, a decline of 28 percent. Despite the changer in the valueof AMD’s stock, it will have equaol voting rights with ATIC on The Foundry Co. board. For its Mubadala plans to purchas 58 million sharesof AMD’s common stoclk at a revised per shar e price to be determined.
AMD also will issus to Mubadala an additional 5 millionj warrants to purchaseAMD stock, for a totakl of 35 million warrants. The Foundryh Co. expects to break groun d early next year onthe $4.6 billion plant, to be locatedx in the Luther Forest Technology Campus straddling the towns of Malta and Stillwater. More than 1,4090 people will work at the plant. “Whatf seems to be lost in this is that peoples look at this from the perspectivw of AMD and the numeroue purported advantagesfor AMD,” said Brian Piccioni, an analyst with who followsx AMD. “It seems to me that any advantagexs only accrue if you take it as a given that this newFoundry Co. will be a success. ...
The forgonee conclusion that TheFoundry Co. will succeed is more likelu founded on faith thananything else. It’s not a questiohn of ‘if you build it they will come,’ ” he Sen. Charles Schumer (D-N.Y.) said AMD Executivre Chairman Hector Ruiz gave his assurance that the Maltz project is still on Alsothis week, Malta and Stillwater voted to accepft $27 million in exemptions from state and local taxes associated with the construction of the