FTC expands Compaq-Digital query
news.com
Federal Trade Commission regulators have made a second request for information in Compaq's (CPQ) pending acquisition of Digital Equipment (DEC), as questions loom whether regulators will extend their antitrust investigation to examine DEC's divestiture of its fabrication plant to Intel (INTC)...
...DEC, meanwhile, is awaiting closure of its deal with Intel, which is expected to happen some time in April or May. Under the $700 million agreement, Digital will sell its chip plants to Intel, cross-license patents, receive Intel and Alpha microprocessors, and develop future systems based on Intel's 64-bit microprocessors. Concerns have emerged over whether this transaction will hinder competition, given Intel's plans to ship its Merced chip, which will compete head-to-head with Digital's Alpha chip currently on the market.
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