Compaq Message Board - Msg: 5394175

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Technology Stocks : Compaq

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To: John Finley who wrote (30256)	8/3/1998 10:54:00 AM
From: Mark Woolfson	Read Replies (2) of 97611

John, INTC bought the Alpha production facility from DEC. They are under contract for 2-3 years to produce the CPU for CPQ now that DEC is CPQ. Kind of wierd to have money flowing in both direction, but actually I see it as leverage for both CPQ and INTC. INTC won't dare disturb this arrangment and will fight to keep it alive to a certain extent. It is one of the only things the justice department is keeping away from INTC from bringing a full-blown anti-trust lawsuit against INTC. CPQ benefits because they don't have the engineers to produce a good quality CPU. INTC does. Mark

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