Not enough votes to approve AMD spinoff until maybe next week

What was expected to have been a hassle-free affair, with shareholders likely approving AMD's risky "asset-smart" reorganization move, had to be postponed until next Wednesday due to the absence of a quorum.

An AMD spokesperson confirmed to Betanews this afternoon that the measure to issue new shares of the company -- a measure necessary to effectively create the basis for the entity still being called The Foundry Company -- had to be postponed since not enough shareholders showed up at the Hilton Austin Airport hotel for the meeting.

The new shares would immediately be acquired by the Advanced Technology Investment Company, a subsidiary of Abu Dhabi-based Mubadala Investment. Mubadala would then effectuate the spinoff of Foundry Company, with the plan being to place former AMD CEO Hector Ruiz in charge. From there, the new company would likely begin construction of a $4.6 billion facility in Malta to build new 32 nm 300mm wafers, with AMD being its major customer.

As if that transaction wasn't complex enough, it awaits formal approval by AMD shareholders. "We need 50 percent of the shared voted to reach a quorum, and as of yesterday morning, we had 42 percent voting," related AMD spokesperson Michael Silverman, "with 97 percent of the votes cast in favor of the transaction."

That said, someone must have called attention to the absence of a quorum after the votes were cast. Anyway, if you're an AMD shareholder with a say in this affair, you're asked to show up at the Hilton Austin Airport hotel, 9515 Hotel Drive, Austin Texas, at 10:00 am CST February 18.

Stories appearing in the press last night suggesting that the spinoff measure failed due to the absence of a quorum, were denied by AMD to Betanews this afternoon.