Nov. 14 (Bloomberg) -- Advanced Micro Devices Inc., the second-largest maker of personal-computer processors, said it isn’t actively pursuing a sale of the company or a significant sale of assets.
“AMD’s 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,” Drew Prairie, a spokesman for AMD, said in an e-mailed statement yesterday.
The statement came after Reuters reported that AMD hired JPMorgan Chase & Co. (JPM:US) to explore options, including a potential sale of the company or its patent portfolio. AMD shares (AMD:US) fell 7.7 percent to $1.93 at the close in New York. Yesterday they surged as much as 18 percent following the Reuters report, then pared gains to close up 5 percent.
Last month, AMD gave a forecast for fourth-quarter sales that fell short of analysts’ estimates and said it would cut 15 percent of its staff, citing weak demand across all product lines in a challenging economic environment.
The revenue projection put the Sunnyvale, California-based company on course for its fourth consecutive quarterly sales decline. That led analysts such as Sanford C Bernstein & Co.’s Stacy Rasgon to predict that, if the trend continues, cash reserves may fall short of what AMD says it needs. The stock has dropped 64 percent this year.
To contact the reporter on this story: Ian King in San Francisco at email@example.com
To contact the editor responsible for this story: Tom Giles at firstname.lastname@example.org