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Technology Stocks : Intel Corporation (INTC)
INTC 38.16+2.5%Nov 7 9:30 AM EST

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To: Mary Cluney who wrote (64903)9/16/1998 5:33:00 PM
From: Joey Smith  Read Replies (1) of 186894
 
Mary, alliances are the mode of the day, not large acquisitions. With markets and technology changing so fast, it is very risky taking on a large acquisition. (e.g. IBM/Lotus, CPQ/DEC). IMO, value is created between two companies when there is new product/market development, NOT when there is simply economies of scale (combine operations) and scope (share customers) . Because of the large overlap in the NIC market, I would view Intel/3COM as an economies of scale/scope relationship and would view an acquisition as a mistake. I would much rather see the two companies get together to devlop new products/markets thru an alliance. That way, each partner gets what it wants without all the unwanted baggage.

joey
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