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2006/07/24 Prepared to long AMD in 2 months
after the new financing is announced done some time down the road. This time, AMD will be diluted hard for ATYT takeover, convertible debenture retirement and new debt financing. According to the PR, the reorg saving is only $75M for 18 months. More unfavorable news is expected in the following weeks.
It will not be surprising if it goes to single digit before inching up this time.
Right now, it should be a good time to long ATYT and short AMD for arbitrage.
"AMD anticipates it will finance the cash portion of the transaction with a combination of cash and new debt. AMD has obtained a $2.5 billion term loan commitment from Morgan Stanley Senior Funding, Inc. which, together with combined existing cash, cash equivalents, and short term investments balances of approximately $3.0 billion, provides full funding for the transaction. "
http://bigcharts.marketwatch.com/news/articles.asp?guid={11B08E9B-E0D0-43F9-8205-925B8CF57ECE}&newsid=879414646&symb=AMD&sid=373 |
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