AMD Denies Sale Report
NEW YORK (AP) -- Shares of chipmaker Advanced Micro Devices Inc. spiked and then retreated Tuesday after a report said the company was exploring options including a sale. The company denied it.
Reuters said on Tuesday afternoon that AMD had hired JPMorgan Chase & Co to explore strategic options including a sale, citing unnamed sources. The sources said the outright sale of the company was not a priority, but that options could include the sale of its patents.
"AMD is not actively pursuing a sale of the company or significant assets at this time," AMD said in a statement. "AMD's board and management believe that the strategy the company is currently pursuing to drive long-term growth by leveraging AMD's highly differentiated technology assets is the right approach to enhance shareholder value."
AMD shares, which had risen as much as 36 cents, or 18 percent, to $2.35 after the published report, fell back to end the regular session 5 percent higher at $2.09.
In after-hours trading, shares lost 6 cents, or 2.9 percent, to $2.03.
The stock has lost about 76 percent of its value since reaching a 52-week high of $8.35 in March.
Last month Sunnyvale, Calif.-based AMD said it was cutting 1,800 jobs, about 15 percent of its workforce, by the end of the year to deal with dwindling sales as consumers shift away from PCs to tablets and smartphones.