AMD Denies It’s Looking for a Buyer

AMD Tuesday denied a Reuters report saying the semiconductor shop hired JP Morgan to "explore options," citing three unnamed sources "familiar with the situation."

The news wire said the financially flagging company might sell its patents and that the "outright sale" of the company was "not the main option."

The story provoked AMD to issue a statement saying its "board and management believe that the strategy the company is currently pursuing to drive long-term growth by leveraging AMD's highly differentiated technology assets is the right approach to enhance shareholder value. AMD is not actively pursuing a sale of the company or significant assets at this time."

It did not explain why it hired the bank.

Observers figure the company's sale could be difficult.

Last week AMD added a second representative of Mubadala Development Company to its board. The Abu Dhabi sovereign wealth fund owns close to 20% of AMD and is obviously broadening its oversight.

Last month AMD said its Q4 prospects are below expectations because of weak across-the-board demand and that it would cut 15% of its staff, provoking fears it could run out of the money needed to operate.

© 2008 SYS-CON Media