July 24, 2006 — Advanced Micro Devices, Inc. (AMD), the world's second-biggest maker of microprocessors, announced it will purchase ATI Technologies Inc. (ATI), a leader in the supply of graphics, video and multimedia solutions, for approximately $5.4 billion.  Shearman & Sterling LLP is acting as legal advisor to Toronto-based ATI in the transaction.

By combining AMD’s technology leadership in microprocessors with ATI’s strengths in graphics, chipsets and consumer electronics, the deal will create a processing powerhouse. Under the terms of the agreement, AMD will purchase all outstanding shares of ATI common stock through a combination of $4.2 billion in cash and 57 million shares of AMD common stock.  The deal is expected to be completed by the fourth quarter of 2006 and is subject to regulatory approval.

Christopher J. Cummings (Mergers & Acquisitions/Capital Markets) and Adam M. Givertz (Mergers & Acquisitions/Capital Markets) of Shearman & Sterling's Toronto office led a team of attorneys from the San Francisco, Menlo Park, New York and London offices that included Ann Woo (Mergers & Acquisitions), Christopher Dumper (Mergers & Acquisitions), Jeremy Gruschcow (Mergers & Acquisitions/Capital Markets), Laurence Crouch (Tax), Christy Lai (Intellectual Property), Scott Lyne (Intellectual Property), Tina Patel (Intellectual Property), Beau Buffier (Antitrust), and Matthew Readings (Antitrust)