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AMD insists split doesn’t violate Intel agreement

by Scott Bicheno on 11 February 2009, 18:57

Tags: Intel (NASDAQ:INTC), AMD (NYSE:AMD)

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To get a clearer idea of why AMD is so sure of the status of TFC as a subsidiary we spoke again to Prairie. "We set up the structure of TFC to ensure it's within existing agreements," he said.

To prove his point Prairie pointed us to the redacted version of the agreement that can be viewed here, specifically point 1.22 on page three of it. One of the definitions of a subsidiary shown is that one of the parties to the agreement must own at least 50 percent of the voting shares.

When AMD first announced the split it stated that it will have equal voting rights with partner ATIC in TFC so, according to that part of the publicly available part of the cross-license agreement at least, AMD appears to have stayed within the rules of the agreement.

Obviously Intel doesn't think things are quite as clear cut as that, or it wouldn't have asked for the meeting. Prairie said the date of the meeting hadn't been confirmed yet, but it will be interesting to see what issue Intel has with the apparently straightforward wording of that part of the agreement and what other concerns it has. Hopefully they'll be made public.

 



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