A new rumor is spreading like wild fire on the internet according to which takeover of AMD by IBM is imminent. As expected, AMD’s shares rose as much as 8 percent on Wednesday while IBM’s stock was down by 1.7 percent on NYSE. According to analyst, chances of IBM takeover are very slim as IBM has already exited hardware business; it sold its computer business to Lenovo, hard drive business to Hitachi, and printer business to Ricoh. And on wednesday IBM also announced that it was buying privately held AptSoft Corp to expand its business event processing software portfolio.

On the other hand, AMD might benefit from the deal as IBM have a chip-fabrication plant to built microprocessors in East Fishkill, New York. Advanced Micro Devices currently have only one chip fabrication plant, in Germany and has plans to build another one outside Albany, New York.

Source : Reuters