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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: Marvin Mansky who wrote (40436)	4/2/2000 8:54:00 PM
From: puborectalis	Respond to of 74651

MSFT has a responsibility to its millions of shareholders to avoid a longdrawnout legal brouhaha with the gov't and all those attorneys waiting to sue MSFT on behalf of a multitude of companies and individuals....C'Mon Bill and Steve...we don't want another tobacco fiasco. Microsoft verdict likely next week April 02, 2000 by Staff and Wire Reports A verdict in the landmark Microsoft (MSFT) antitrust suit could come as early as next week, following the breakdown of talks between the software giant and the Department of Justice and the attorneys general of 19 states. Judge Thomas Penfield Jackson is likely to rule against Microsoft, having already found that the company engaged in monopolistic practices. Microsoft Chairman Bill Gates and general counsel Bill Neukom vowed Saturday night to fight on appeal, which could delay a resolution for years. "This case is a long-standing play," Neukom said. "We are just in the middle of it. There are a lot more rounds to come. We continue to be confident that we will prevail in the end." A frustrated Judge Richard Posner, the mediator appointed to help the sides bridge their differences, announced the end of the talks Saturday. 'Deep-seated' differences Posner, of the U.S. Court of Appeals, said, "It is apparent that the disagreements among the parties concerning the likely course, outcome, and consequences of continued litigation, as well as the implications and ramifications of alternative terms of settlement, are too deep-seated to be bridged." Posner said his four months of efforts had "proved fruitless" because those differences. Gates said he was disappointed that the talks have stopped. "Microsoft," said Gates, "has devoted more than 3,000 hours to the effort over the last four months and offered significant concessions." Both sides were quick to blame each other for the collapse of the talks. According to the Washington Post, sources close to the government's case said Microsoft refused to close loopholes in its proposals and that its "final, final offer" was "wholly inadequate" to correct the damage done to the marketplace by Microsoft's anti-competitive conduct. "Settlement for settlement's sake would be pointless," said Joel Klein, assistant attorney general for the Justice Department?s antitrust division. "We will seek a remedy that prevents Microsoft from using its monopoly in the future to stifle competition, hamper innovation and limit consumer choice," Klein said. Demands not 'sane' In a conference call with reporters, Gates suggested that the states' demands weren't "sane" and that the Justice Department and the 19 states that were plaintiffs in the case were so divided that "it became impossible to settle." Gates expressed frustration over having to deal with 20 plaintiffs that appeared to be at odds with one another. "Between them," he said, "they appeared to be demanding either a breakup of our company or other extreme concessions that go far beyond the issues raised in the lawsuit." State officials said they did nothing to sabotage a deal a deal. A lawyer close to the government's side of the case told the Washington Post that "the states were not a significant factor in the breakdown of the talks. What was decisive was Microsoft's insistence on its own proposal, which contained many loopholes and failed to address the competitive problems detailed in the court's findings." Flurry of proposals Microsoft and the government had been exchanging proposals and counterproposals over the last week. The Justice Department sent its latest proposal to Posner late in the week, and the judge passed it on to Microsoft. A lawyer who was close to the talks said Microsoft would not agree to the government's latest demands. When Judge Posner saw Microsoft's counterproposal, he declared the talks dead. According to the New York Times, one person involved in the talks said Microsoft's response on Friday was "not even close" to the Justice Department proposal. Microsoft, this participant said, insisted on its unrestricted freedom to bundle software -- like Internet browsing software -- to its industry-standard Windows operating system, which was a key element in the case. The Software and Information Industry Association, a trade group that includes Microsoft rivals and is a supporter of the government's case, appeared pleased at the failure of the talks. "We're pleased that Justice and the states refused to accept a settlement that wouldn't effectively curb Microsoft's use of monopoly power," said Ken Wasch, president of the association. Against Microsoft It is all but certain that Judge Jackson's verdict will go against Microsoft. In his 207-page findings of fact issued in November, Jackson strongly condemned the software company for its monopolistic practices. He found that Microsoft abused monopoly power with its Windows operating system, damaging consumers, competitors and other firms. The remedies could include the breakup of the company, but experts think that is very unlikely. It is more likely that Jackson will impose restrictions on various business practices of Microsoft.

To: Marvin Mansky who wrote (40436)	4/2/2000 11:02:00 PM
From: Hal Rubel	Respond to of 74651

Citizen Gates NOW IT GETS INTERESTING What happens now will define Bill Gates entire career and our opinion of him for all time. Hal PS: If you are in it because Microsoft is in your blood, hold on tight to your shares. If you are in it for the money in your brokerage account, it's time to become as calm and rational as possible. If you remember your first kiss, if you remember where you were when Pear Harbor was bombed, if you remember what you were doing when Kennedy was shot, rest assured, you will not forget April, 2000. There is big money to be made based on the final act. Enough said, the die is cast. Good fortune to all. H.