Abu Dhabi set to take up 9 pct stake in AMD-report
SINGAPORE, Nov 16 (Reuters) - Abu Dhabi is set to take a 9 percent stake in Advanced Micro Devices (AMD.N), the U.S. chipmaker whose work includes government contracts, the Financial Times said on Friday.
The deal would cost Mubadala Development about $700 million, the paper said, citing people close to the situation. Mubadala Development is an investment and development firm wholly owned by the government of Abu Dhabi.
The newspaper said the move could attract the attention of the U.S. Committee on Foreign Investment, which vets acquisitions by foreign investors. The committee is most worried about investments in technology and defence companies on national security grounds, the report said.
It said Advanced Micro Devices (AMD) was likely to welcome the investment after it reported its fourth consecutive quarter of losses last month in the face of competition from its rival Intel (INTC.O) the world's biggest chipmaker.
AMD has been strapped for cash since its $5.4 billion purchase of Canadian graphics chip company, ATI.
AMD filed with U.S. regulators on Thursday to periodically sell up to $700 million in common stock.
The second-largest maker of computer processors said in a registration statement with the U.S. Securities and Exchange Commission that it will use the proceeds from the offering for general corporate purposes, which could include reducing outstanding indebtedness, increasing working capital, acquisitions and capital expenditures. (Reporting by Valerie Lee, editing by Jacqueline Wong)
