AMD's board approves ATI takeover offer

Written by Luke    Friday, 21 July 2006 12:49

ATI shares were up 8% in after-hours trading today amidst a report saying AMD may be planning a takeover of the Ontario, Canada based graphics chipset manufacturer. The deal, estimated at $5.6 billion, would have huge implications in the graphics card industry where the only other major competitor is Nvidia. 

Analysts have been buzzing for a while about this deal, but so far everything has been rumors and speculation. AMD's board has now approved a takeover offer. This information was reported by Globe and Mail, a Canadian newspaper. Their source was an investment banker familiar with the talks between the two companies. More evidence of a possible takeover come from the sightings of AMD executives at ATI's Markham, Ont. head office.