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Was Ruiz AMD leak?
By Eric Anderson
Times Union, Albany, N.Y.
Oct. 28--The Wall Street Journal is identifying GlobalFoundries Chairman Hector Ruiz as the source who provided insider information about Advanced Micro Devices Inc.'s restructuring in 2008.
Ruiz shared confidential information with Danielle Chiesi, a defendant in the insider trading case involving Manhattan hedge fund firm Galleon Group, the newspaper reported on its Web site Tuesday evening.
At the time, he was AMD's executive chairman.
Ruiz isn't a defendant in the case, and he declined to comment, the Journal reported.
The restructuring spun off AMD's manufacturing operations into a new company, GlobalFoundries, bankrolled by Abu Dhabi investors in a $3.6 billion deal.
GlobalFoundries is building a $4.2 billion semiconductor fabrication plant at the Luther Forest Technology Campus in the Saratoga County towns of Malta and Stillwater.
New York state has provided incentives worth $1.4 billion for the project, which is expected to be up and running by 2012.
Six people were arrested Oct. 16, including Chiesi and Robert W. Moffat Jr., a senior vice president in charge of IBM's hardware and semiconductor operations. Moffat, 53, is a 1978 graduate of Union College in Schenectady.
Also arrested was Raj Rajaratnam, founder of the Galleon Group.
According to federal wiretaps, Chiesi was getting insider information about AMD from Moffat, who was in a position to know about the restructuring because IBM would have to approve the licensing of chipmaking technologies that GlobalFoundries would use in its chip fabrication operations.
But according to the federal wiretaps, Chiesi also was getting information from an unnamed AMD employee about the deal with Abu Dhabi. She was passing that information on to Rajaratnam, along with the information she was getting from Moffat.
Another defendant, Anil Kumar, a director at consulting firm McKinsey & Co., also is accused of providing information to Rajaratnam about the AMD restructuring. McKinsey had been hired by AMD in June 2008 to work on the Abu Dhabi deal.
GlobalFoundries spokesman Travis Bullard Tuesday evening said the company would have no comment.
"The events in the (Journal) story actually predate our creation," he said. Asked whether it would have any impact on GlobalFoundries Luther Forest project, he said no.
AMD spokesman Drew Prairie said: "We are thoroughly reviewing the situation, but at this time we don't have any more detail to discuss publicly. We are not aware of any allegation of criminal misconduct on the part of any current or former AMD employees, nor have any current or former AMD employees been charged with a crime. It would be inappropriate to comment further on an ongoing Department of Justice investigation."
Chiesi had used the information to buy millions of dollars worth of AMD stock, according to prosecutors. So did Rajaratnam.
While the shares rose after the restructuring was announced, they later tumbled in the stock market meltdown.
Business writer Larry Rulison contributed to this story.
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