AMD Shoots Down Sale Rumors

The chip maker denies a media report that it's shopping itself.
By James Rogers ,

NEW YORK (

TheStreet

) --

AMD

(AMD) - Get Report

has denied that it's on the block following a media report that the No. 2 chip maker could be be up for sale.

"AMD's board and management believe that the strategy the company is currently pursuing to drive long-term growth by leveraging AMD's highly-differentiated technology assets is the right approach to enhance shareholder value," wrote an AMD spokesman, in a statement emailed to

TheStreet

. "AMD is not actively pursuing a sale of the company or significant assets at this time."

Earlier on Tuesday,

Reuters

reported that the Austin-based firm has hired

JP Morgan Chase

(JPM) - Get Report

to explore options, which could include a sale.

Citing unnamed sources,

Reuters

reported that an outright sale of the company is not a priority, and other options could include a sale of its patent portfolio.

AMD has been wrestling with a slowdown in the PC spending environment, as well as stiff competition from No. 1 chip maker

Intel

(INTC) - Get Report

. The Texas-based company reported a deep

third-quarter loss

last month and revealed plans to cut 15% of its work force. AMD also forecast a sequential decrease in revenue of around 9% for the fourth quarter.

Shares of AMD, which are down 61.3% this year, closed up 5.03% at $2.09 on Tuesday. The company's stock, however, was off 1.91% in extended trading.

--

Written by James Rogers in New York.

Follow @jamesjrogers

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