Intel settles up with AMD in $1.25bn deal

INTEL has agreed to pay rival Advanced Micro Devices (AMD) $1.25bn (&pound;755m) to settle all outstanding legal disputes.<br /><br />The settlement ends a campaign that AMD has been waging against its larger rival which stretches back 12 years, and will give the firm vital funds to pay down its $3.2bn of debt. <br /><br />AMD took legal action against Intel in 2005, arguing that it thwarts competition in the microprocessor market by offering hefty discounts to customers that refuse to buy AMD&rsquo;s products. <br /><br />Regulators in Asia, Europe and the US have taken action against Intel because of complaints by AMD that its business is being damaged by alleged anti-competitive behaviour by the world&rsquo;s top chipmaker, which makes 80 per cent of the central processing units (CPUs) at the heart of personal computers.<br /><br />Joanne Feeney of FTN Equity Capital Markets said the deal could stave off the US Federal Trade Commission&rsquo;s pending decision to take action against Intel. The commission&rsquo;s chairman, Jon Leibowitz, said it will review the settlement.<br /><br />AMD said it will withdraw all its regulatory complaints worldwide and drop all pending litigation. Intel and AMD also sealed a five-year cross license deal and said they would give up any claims of breach from their previous licence agreement. <br /><br />But sources said that the agreement would have no effect on other lawsuits filed against Intel.