AMD Forced To Postpone Vote On Abu Dhabi Spinoff
Earlier this week, AMD attempted to gather enough shareholder votes to approve the spinoff, with "attempted" being the key word here. The chip maker only heard from 42 percent of eligible voters, and obviously a majority vote is needed in order to approve the deal. Of the ones that did bother to cast their opinions, a staggering 97 percent were in favor, and it's easy to understand why. If AMD is finally able to free it hands somewhat from the capital intensive chip production business, that would greatly help the company as it attempts to return to profitability after nine consecutive quarterly losses.
AMD spokesman Drew Prairie confessed that it was probably responsible for the gaff: "We had set an aggressive schedule for the shareholder meeting. In retrospect, it was maybe too aggressive, and we need a little more time for stockholders to participate in the vote." For now, the shareholder meeting will be adjourned until February 18th in order to provide more time for investors to vote. According to Caris & Co. analyst Betsy Van Hees: "It's just a delay, and a delay that could consequently push out the closing date of the venture. We were largely expecting this to be just a formality, so this does certainly give us increasing cause for concern." It's largely believed that the new date will lead to complete passage of the deal, and that lingering cash infusion couldn't possibly come soon enough. After all, rival Intel just announced that it would be investing $7 billion in new fabrication plans -- better counter quick, AMD.