Monday, July 24, 2006

Pre-Market - AMD and ATYT Together At Last.

AMD and ATI (ATYT 16.56) announce plans to join forces in a transaction valued at approx $5.4 bln. Under the terms of the transaction, AMD will acquire all of the outstanding common shares of ATI for a combination of $4.2 bln in cash and 57 mln shares of AMD common stock, based on the number of shares of ATI common stock outstanding on July 21, 2006. Based upon the closing price of AMD common stock on July 21, 2006 of $18.26 a share, the consideration for each outstanding share of ATI common stock would be $20.47, comprised of $16.40 of cash and 0.2229 shares of AMD common stock. AMD expects that the transaction will be slightly accretive to earnings in 2007, and meaningfully accretive in 2008, before the inclusion of ATI acquisition-related charges.

ATYT started trading up AH on Friday as this takeover was reported by Canada's #1 financial news source the Globe and Mail. From a close Friday of $16.56, ATYT ended the AH session at $18.00, currently trading at $19.00. AMD, conversely is trading down below Friday's low (currently trading at $17.21). NVDA will also be in play on this news. Expect NVDA to test recent lows in early action this morning.

3 comments:

monkeydust said...

Interesting day for these stocks. AMD and ATYT traded as expected. NVDA dropped about 30-40 cents in premarket before the analysts started pumping it. The stock did an about face and traded way up in premarket and ended up 10% for the day. I expected a selloff and at first and then buyers to come back in but I didn't expect it to go up 10% today. NVDA is one of my biggest holdings right now.

Looks like the SOX is trying to lead the NAS higher now. Semis like SLAB, TXN, and SNDK are pushing out some good numbers and helping lead the sector higher.

monkeydust said...

NVDA continued to climb in AH today closing the day with with 20.10 bid and 20.27 ask. Let's see if that momentum will carry through tomorrow.

Gonna miss trading ATYT though. :(

Jamie said...

Last sale on Esignal went through at $19.87. I'd like to see NVDA pull back to $19.25 - $19.00 before taking out $20.00. Big volume today and I noticed a few big block orders right in the opening minutes of trade. Could be be institutional buying. First they accumulate, then they upgrade. :)