UPDATE 4-Intel to pay AMD $1.25 bln, settle disputes

Thu Nov 12, 2009 10:51pm GMT
 
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* Agree to five-year cross-licensing deal

* AMD to drop all complaints, litigation against Intel

* Paves way for GlobalFoundries to be independent of AMD

* U.S. Federal Trade Commission reviewing the settlement

* AMD shares up 22 pct, Intel shares edge down 0.8 pct (Adds analyst quotes, Nvidia comment, background)

By David Lawsky

SAN FRANCISCO, Nov 12 (Reuters) - Intel Corp (INTC.O) will pay rival chipmaker Advanced Micro Devices Inc (AMD.N) $1.25 billion to settle all outstanding legal disputes, in a move that can hasten the resolution of Intel's antitrust troubles.

AMD, whose shares jumped 22 percent, agreed to withdraw essentially all its regulatory complaints and litigation against Intel, ending a global campaign that it has waged on the world's largest chipmaker for 12 years.

Some analysts said the deal takes the steam out of a pending U.S. Federal Trade Commission investigation into Intel's business practices.  Continued...

 

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