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Technology Stocks : Intel Corporation (INTC)
INTC 50.22-0.7%3:59 PM EST

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To: Sonny McWilliams who wrote (21645)5/13/1997 8:15:00 PM
From: Barry A. Watzman   of 186894
 
If this is DEC's motive, it could backfire BIG TIME.

In 1994, IBM (yes, IBM) GAVE UP THE RIGHT TO MAKE THEIR OWN PENTIUMS so that they could MAKE THEIR OWN 486's !!! [They did this because they KNEW that the Power-PC, which was their own chip, would be the real successor to the 486 !!!]

DEC good be giving up rights to the Merced in what might be a failed attempt to milk some Pentium money off of Intel because they believe that AMD can now fill their Pentium needs and they no longer need Intel, at least not as much. Not quite as intentionally cutting their own throat as IBM did in 1994, but the effect could be the same. Even if there is no "Overt" retaliation by Intel, I can guarantee you that relations between the two companies will NEVER be the same.
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