Intel may snap up AMD

In wake of Via's latest move

Speculation is mounting in the chip community that Intel might now feel able to buy AMD. The chip giant would be safe from the threat of Federal Trade Commission (FTC) action because of Via's latest acquisition -- the IDT-Centaur x.86 business line. Earlier this week, Via said it would pay $167 million for Cyrix technology. AMD would not come too expensive. For over a month now, its share price has bumped along at a dismal $16 or so. AMD turned in a record loss-making quarter recently, and is in debt up to its eyeballs. And, last week, AMD's credit rating in the US was downgraded a notch. The move would also have the neat effect of knocking the Athlon K7 out of the chip equation. We know Intel is worried, very worried about this. There is another possibility, according to an ex-Intelinsider. He said that Intel was more likely to wait until AMD drifted into Chapter 11, and then come in as a white knight, thus looking a bit like the hero it wants to look like... ®

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