AMD shares gain on IBM takeover speculation

Mergermarket.com, a mergers-focused news service, reported on the Financial Times' Web site that IBM and AMD could strengthen their current partnership.

"A deal could see IBM's microelectronics division merge with AMD at some point, possibly in the near term," mergermarket.com correspondent David Zielenziger wrote, citing "industry sources."

(Additional reporting by Doris Frankel in Chicago, editing by Gerald E. McCormick)