AMD-ATI job cuts boost share price

THE CHIEF beancounter at AMD told financial analysts that his firm will save more than it thought after its takeover of ATI.

So called synergies will knock off $150 million next year and $220 million in 2008, Robert Rivet told financial analysts. The “synergies” were only expected to save $75 million in 2007 and $125 milion the year after.

AMD shares flew up by over $2.50 on the NYSE to rest on a $22.71 perch.

AMD had to borrow to buy ATI and the graphics division won’t turn a profit in the firm’s fourth quarter.

The firm may have to borrow more cash in the future.

News source: THEINQUIRER


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