To All,
Briefing news
AMD Could Regain Footing As Intel Wrestles With FTC (AMD) - Report
Newstraders - February 08, 1999 12:39
(NewsTraders.com)-- The Federal Trade Commission's antitrust trial against Intel (INTC) is helping rival Advanced Micro Devices (AMD) attract attention from direct PC vendors, according to Electronic Buyer's News.
Highlights:
Intel has softened its sales tactics in an effort to ease antitrust scrutiny, according to one analyst. The FTC suit might prop up AMD's market share by emboldening original equipment manufacturers (OEMs), said Dean McCarron of Mercury Research. "The next thing you have to ask is why OEMs are less worried about retaliation, and the FTC is my guess," he said, referring to more OEMs looking at AMD's chips as an alternative to Intel's microprocessors. AMD shares sank last week after the company warned that it might post a loss in the first
quarter. NewsTraders reported earlier today on a San Jose Mercury News story that said AMD might be attractive to bottom fishers.
Copyright 1999 NewsTraders Inc. All Rights Reserved 12:39 Monday, February 08, 1999
Bloomberg news
Intel Fails to Remove Top Government Lawyer From Case
Washington, Feb. 9 (Bloomberg) -- Intel Corp., just weeks away from the start of its antitrust trial, failed in a bid to disqualify the government's top lawyer in the case, according to documents filed at the U.S. Federal Trade Commission. In a motion filed under seal, the world's largest maker of computer chips asked that Richard Parker, senior deputy director of the FTC's Bureau of Competition, be removed as lead prosecuting attorney at the trial, which is scheduled to begin March 9. James Timony, the FTC administrative law judge who will hear the case, denied the request in a five-page ruling disputing Intel's
allegation that Parker's ties to Advanced Micro Devices, an Intel rival, create a conflict of interest. Prior to joining the FTC in early 1998, Parker was a partner at the Los Angeles-based law firm O'Melveny & Myers, whose client list includes AMD. Intel spokesman Chuck Mulloy declined to talk about the specifics of the motion or comment on the judge's denial. Timony disagreed with Intel's allegation that the government recently has ''shifted gears'' in
its case ''to adopt a theory advocated by the prosecutor's private client.'' Instead, he said, ''The focus of this case is Intel's expropriation of computer technology, not from AMD, but from Digital Equipment Corp., Intergraph Corp. and Compaq Computer Corp.'' Timony said Parker's involvement with the case was cleared by the agency's ethics officer, who asked only that he limit his involvement with AMD officials who are involved in the case. To that extent, other members of the FTC trial team will take over. AMD, the second-largest maker of microprocessors, has confirmed that Atiq Raza, the company's chief technology officer, is scheduled to testify for the government in the case. Official witness lists are expected to be released Feb. 19. In
June, the FTC, which enforces the nation's antitrust laws along with the Justice Department, accused Intel of using a monopoly in the computer-chip market to force rivals and customers to surrender their patent rights on certain products. Intel's microprocessors run about 90 percent of the world's personal computers, and the Santa Clara, California-based company controls about 80 percent of the $23.7 billion computer-chip market. Timony also denied Intel's request to block the testimony of Dean Klein, chief technology officer for Micron Electronics Inc., and Donald Lewine, an engineering consultant with
Data General Corp. for 15 years. Both are potential witnesses for the government. According to Timony's order, Klein is expected to testify about the market for microprocessors and Lewine will discuss his reaction to conduct by Intel toward Digital and Intergraph in 1997 and other issues related to the trial.Intel alleged that the potential witnesses weren't identified on preliminary and supplemental lists provided by FTC attorneys, denying the company's lawyers time to question them under oath before filing its expert report on Jan. 6.
The possible testimony by Lewine, who also has taught at Northeastern University, ''is unrelated to Data General,'' said company spokesman Jim Dunlap.
copy;1999 Bloomberg, LP. All rights reserved.
Best wishes
James
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