Friday, October 13 2006, 12:11:11 #37004 ATI shareholders approve takeover by AMD
TORONTO Ч Shareholders of Canadian video chip maker ATI Technologies Inc. have overwhelmingly approved a $5.6-billion (U.S.) takeover by U.S.-based Advanced Micro Devices Inc.
ATI shareholders voted 99.7 per cent in favour of the deal Friday at the company's annual meeting in Toronto. The deal is expected to be completed during the week of Oct. 23.
Earlier Friday, AMD reported it had secured approval for the acquisition from Investment Canada.
УWe are confident that our plans for the combination of AMD and ATI will deliver world-class customer-centric solutions and will benefit Canada and its future role in the technology industry,Ф AMD chairman and CEO Hector Ruiz said in a release.
УWe look forward to the successful completion of the transaction that will generate new opportunities for both companies, the employees and the communities in which we operate.Ф
AMD said its submission to Investment Canada included plans to expand research and development in Canada, increasing the number of employees and spending in the research and development sector in Canada.
It also promised to increase the number of co-op positions available to Canadian students at its operations in Canada and to nominating a Canadian for election to AMD's board over the next five years.
AMD has said it expects synergies worth $75-million in 2007 and $125-million annually beyond that. It has previously said that duplication will be eliminated in the selling, general and administrative category, as well as in research and development.
AMD is offering $4.2-billion in cash and 57 million AMD shares for ATI. Based on AMD's closing share price of $24.69 on Thursday, the deal was worth $5.6-billion.
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