[H] -N- AMD Expected to announce Acquire of ATI Monday

[Chris Reeves]

http://ca.today.reuters.com/news/newsArticle.aspx?type=businessNews&storyID=2006-07-22T000756Z_01_N21314930_RTRIDST_0_BUSINESS-ATI-AMD-COL.XML&archived=False   By Jessica Hall PHILADELPHIA (Reuters) - Advanced Micro Devices Inc. (AMD.N: Quote), the No. 2 supplier of computer processors, is close to a deal to buy graphics chip maker ATI Technologies Inc. (ATYT.O: Quote) (ATY.TO: Quote) for $5.5 billion, a source familiar with the situation said on Friday. Such a deal would shake up the processor industry, which is witnessing a tooth-and-nail fight for market share between AMD and larger rival Intel Corp. (INTC.O: Quote). AMD would gain one of two major graphics chips makers, the other being Nvidia Corp. (NVDA.O: Quote). Markham, Ontario-based ATI is also a big supplier of chipsets -- the cluster of secondary chips and interfaces that surround a computer's processor -- for AMD and Intel products. Unless talks break down, a deal could be announced as early as Monday, the source said. ATI and AMD both declined to comment.