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Advanced Micro Devices Inc., a struggling competitor to Intel Corp., was in talks to sell about a 25 percent stake to private-equity firm Silver Lake Management before the negotiations stalled, people with knowledge of the matter said.

The two sides, which met over the summer, have put the discussions on hold after failing to agree on a price and strategy, said one of the people, who asked not to be identified because the information is private. AMD is also considering other strategic options, another person said.

AMD is losing market share to Intel in processors for personal computers and servers. It’s trying to branch out into custom chips in an initiative that has so far failed to bring in enough revenue to make up for the orders it’s losing in a declining PC market. The company currently has a market value of about $1.3 billion.

A spokesman for Sunnyvale, California-based AMD declined to comment, as did a representative for Silver Lake.

The chipmaker, which last reported an annual profit in 2011, is on course to report a 28 percent sales decline this year, according to the consensus of analysts’ estimates compiled by Bloomberg. That would lead to its lowest annual revenue in more than a decade.

Shares of AMD are down 38 percent this year, compared with a 16 percent slide in the Philadelphia Stock Exchange Semiconductor Index.

— With assistance by Amy Thomson