* Chairman Hector Ruiz to take leave immediately
* Will resign on January 4, 2010
* Alan "Lanny" Ross named interim chairman
(Adds background, stock activity)
By Ian Sherr
SAN FRANCISCO, Nov 2 Former Advanced Micro
Devices Inc AMD.N Chief Executive Hector Ruiz will step down
as chairman of contract chip maker Globalfoundries, following
reports linking him to the largest hedge fund insider trading
Media reports have said Ruiz passed on confidential
information regarding AMD's spinoff of Globalfoundries to a
hedge fund manager when he was AMD's CEO. [ID:nN28312250]
The accusation is linked to hedge fund Galleon, which is at
the center of a federal investigation rocking Silicon Valley
and shaking up Wall Street, with accusations leveled at
employees of Intel Corp (INTC.O), McKinsey & Co and Akamai
Technologies Inc (AKAM.O).
Ruiz has not so far been charged, nor has he been named by
federal investigators working on the case.
Globalfoundries said on Monday that Ruiz would immediately
take a voluntary leave of absence and resign from the company,
effective Jan. 4.
The statement came as both Globalfoundries and AMD declined
to comment numerous requests regarding Ruiz's future on the
Globalfoundries said Ruiz submitted his resignation in
September, but a spokesman declined to say why the company had
held off on disclosing his departure until Monday. He also
declined to say why Ruiz was leaving.
Although Ruiz, 64, is embroiled in scandal, some analysts
said they saw no connection to his departure.
"He's reaching retirement age," said FTN Equity Capital
Markets analyst Joanne Feeney, who added that, while Ruiz
played a role in the deal spinning off chipmaker
Globalfoundries from chip-designer AMD, he has been mostly
hands-off since then.
"In my opinion, it doesn't affect the company in any way,"
said Feeney, who has a buy rating on the stock.
Alan "Lanny" Ross, former CEO of chip designer Broadcom
Corp BRCM.O, will serve on an interim basis until a permanent
chairman has been appointed.
Ross is a chip industry veteran credited with turning
around Broadcom after he was hired to replace founding CEO
Henry Nicholas who was forced out of the company in 2003 in the
midst of a corporate scandal.
The shares of AMD, which owns a large but minority stake in
the Globalfoundries venture with Abu Dhabi investors Advanced
Technology Investment Corp, closed flat for the day at $4.60 on
the New York Stock Exchange.
(Additional reporting by Franklin Paul in New York and Jim
Finkle in Boston; editing by Gerald E. McCormick and Andre