In my opinion, Intel couldn't buy DEC.
First, the department of Justice wouldn't let it. Intel is not logically "breakable", but it is a near monopoly. Now just what industry is it in ? Computers ? Microprocessors ? Hard to say, but DEC can be defined as both [Alpha], and DOJ almost certainly wouldn't let Intel buy DEC.
Secondly, the fact that DEC current market cap is $5 billion is misleading; if Intel tried to actually buy DEC, especially under the pressure of this lawsuit, the stock would soar. Intel probably couldn't afford it in the end.
Finally, it would destroy Intel's growth and margins. They would take on all of DEC's mundane, low-magin [by Intel standards] businesses and it would dilute Intel's performance. Not something anyone would want [except DEC shareholders if they were to get a really good buyout deal].
So, for all these reasons, I don't think that this solution is in the cards. |
