ATYT had a big day on Monday, jumping 17% after it was announced that the company would be bought out by AMD for about 5.4 billion dollars in cash and stock. This news set the sector on fire, with a big beneficiary of the news being NVDA, which traded up over 10% on the news. Based on Friday’s closing price, the deal will value ATI at $20.47 a share, a premium of 24%. ATI shareholders will receive $4.2 billion in cash and 57 million shares of AMD stock. AMD expects the deal to be slightly accretive to earnings in 2007 and meaningfully accretive to earnings in 2008.
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