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Technology Stocks : Intel Corporation (INTC)

INTC 47.76

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10:17 AM EST

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To: nihil who wrote (34033)	10/6/1997 11:44:00 AM
From: Joey Smith	of 186894

according to the SmartMoney article: Under one scenario, Intel would buy Digital's Alpha manufacturing operations for $650 million, says one person in the Digital camp. On top of that, Intel would pay $200 million to license the right to use the microprocessor, which mainly runs corporate computers, this person says. Digital also would get $100 million or more a year over a period of seven years in discounts on chip purchases from Intel, say people following the talks. These discounts would come from volume price reductions on both the Alpha and Merced chips. Using these numbers: Intel buys(leases?) manufacturing capacity from DEC: $650M Intel buys Alpha licenses from DEC: $200M Intel gives $100M discounts to DEC for 7 years: $700M Total Cost: little over $1.5B joey

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