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Technology Stocks : Digital Equipment Corp. (DEC) -- Ignore unavailable to you. Want to Upgrade?

To: MrBluff who wrote (2835)	1/27/1998 11:27:00 AM
From: George Dvorsky	Respond to of 3276

RE: chip discount. As I understand it, the discount is essentially a fixed ammount. The CPQ deal will not increase the total savings of the deal. gd

To: MrBluff who wrote (2835)	1/28/1998 8:39:00 AM
From: Jeffrey James	Respond to of 3276

Remember that the deal to sell DEC's Hudson plant was arranged by Palmer, so it's value is less than meets the eye. The plant will be sold at book value. To sweeten the deal, Intel promised to sell processors to DEC at tier 1 prices. Since DEC is not a tier 1 PC company, this concession has great value, but costs Intel very little. COMPAQ is Intel's number 1 customer and already gets the best price. Intel's concessions to Digital have zero value to COMPAQ (or now COMPAQ-Digital)