ATI Technologies is Back in the “Game”

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July 23, 2006 | SIN Picks | | Author Asif

The graphic chip making company ATI Technologies (ATYT) will be acquired by Intel’s archrival Advanced Micro Devices (AMD) very soon according to this reuters report for a price tag of $5.4 billion. This works out to a premium of 28.57% on Friday’s closing price of $16.56 and market cap of $4.2 billion and would translate into a bid of around $21.29 per share. The stock jumped up another 9.12% to $18.07 in after hours trading on Friday.

ATI Technologies was featured in the first edition of SINLetter back in August 2005 when it was trading at $13 a share. Rumors about this acquisition were also mentioned in the June 2006 edition of SINLetter based on comments made by an analyst with RBC Capital Markets. This acquisition would represent a return of over 60% for SINLetter subscribers in a little less than a year, which is not bad given that the Nasdaq is actually down over the same time period. Now if only Airspan Networks (AIRN) could gets its Yozan contract issues resolved.

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