Rumours link IBM and AMD

Chip maker's stock soars on takeover talk

IBM may look to form a deeper partnership with AMD, according to industry speculation yesterday.

AMD’s share price leapt by nearly 11 per cent following a Financial Times report claiming Big Blue’s microelectronics arm may strengthen ties with the chip maker. This could even include a merger, the article said, citing industry sources.

The rumours come a week after AMD announced fourth quarter net losses of $1.77bn (£904m).

The chip maker hit total net losses of $3.38bn last year as charges associated with its recent acquisition of graphics maker ATI hit its bottom line hard.