Abu Dhabi government Invests $8.4 billion in AMD

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Abu Dhabi will pay $700 million for a stake in a new company that will own two plants in Germany and build a factory in New York, newswire Bloomberg reported on Tuesday.

The new company, which will assume $1.2 billion of AMD's debt, will receive as much as $6 billion from Abu Dhabi to expand plants and get $1.4 billion in operating capital.

Abu Dhabi will also pay $314 million to double its stake in AMD to 19%, AMD said today in an e-mailed statement.

The cash infusion is a lifeline for AMD, which is forecast to report a third straight annual loss this year and is falling behind on investments needed to keep up.

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