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Technology Stocks : How high will Microsoft fly?
MSFT 507.49-0.6%3:59 PM EST

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To: taxman who wrote (40267)4/1/2000 10:42:00 PM
From: Bill Fischofer  Read Replies (3) of 74651
 
Re: Reaction

After listening to the CC it seems very clear that the reason the settlement talks fell apart was because the plantiffs (DoJ and the 19 state AGs) couldn't get on the same page when it came to settlement proposals. MSFT was very demur when asked about this but if this is true then this whole farce may be about to blow up in DoJ's face.

When Jackson predictably rules against MSFT next week the next step is for plaintiffs to ask the court to impose a remedy. But the fact that they couldn't agree in four months of settlement talks raises the possibility that they will similarly be unable to articulate a coherent request for relief. If this happens then plaintiffs will be in the embarrassing position of having "won" but unable to do anything useful with their "victory". Instead we'll have endless squabbling among the "victors" over what they should ask the court to impose by was of a settlement order. In many ways this would be the best possible outcome for MSFT because it would make painfully obvious the true political nature of this whole sorry chapter in the history of antitrust law. And if this happens we can be sure it will figure in the fall presidential campaign.

In any event, after the theatrics of the ruling itself this case will certainly drag on for years to come and will shortly fade into the background as investors refocus on MSFT's business fundamentals.
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