ATI Technologies is Back in the “Game”

Bookmark and Share

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.




Subscribe to Free Newsletter


Share this Post

Post A Comment, Subscribe to SINLetter