Rumor: Dell May Purchase AMD
Monday AMD saw a sudden 4.2-percent rise in share value by 4pm in New York Stock Exchange composite trading, jumping 35 cents to $8.63 per share. The increase was reportedly due to speculation that AMD may be a take-out target for Dell or other OEMs looking to purchase the nation's second-largest CPU manufacturer.
Currently AMD may be conceived as a prime target. Back in January, Chief Executive Officer Dirk Meyer stepped down from his position after fighting with the board over the company's lack of products in an expanding mobile computer market, and its overall lack of progress in regaining lost shares of the server market. For now Financial Officer Thomas Seifert is acting as interim CEO, but he made it clear he doesn't want the position to be permanent.
Then just last week Chief Operating Officer Robert Rivet and strategy head Marty Seyer announced that they were also leaving AMD. Although the reasons were not provided, it's speculated that the two decided to leave when AMD announced it would conduct an external search for the new CEO. Rivet and Seyer may have assumed that they would not be considered for the position, and quit.
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