AMD is feeling the pinch as tepid interest in its Spansion spinoff has forced a reduction in the IPO price range.

In a filing with the US Securities and Exchange Commission, AMD revealed a cut in the price range for the memory company IPO down from between $16 to $18 a share to between $13 and $14 a share. The Wall Street rumor mill pegged even the $13 target as ambitious with some saying a $12 per share target might be more likely. This is hardly the reception AMD was expecting.

Spansion looks to raise up to $493m in proceeds from the IPO.

By freeing itself of an up and down memory business, AMD's results should appear more consistent. The company has been taking market share from rival Intel, particularly in the server market and has enjoyed record processor revenues in recent quarters.

In addition, Intel may be less inclined to be as fiercely competitive on memory prices with Spansion as it was when AMD sold memory in-house. ®

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• Intel and STMicro Flash venture delayed by cash problems (27 December 2007)
• Spansion settles for IP Low (16 December 2005)
• IBM to be 2005's fastest-growing chip maker (2 December 2005)
• Memory woes color AMD's Q1 red (14 April 2005)
• AMD's depressing Flash biz set for IPO (13 April 2005)
• Jury dismisses AMD religious prejudice claim (12 September 2003)
• AMD, Fuji unveil Spansion (14 July 2003)