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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?


To: John Finley who wrote (30256)8/3/1998 10:54:00 AM
From: Rob Rob  Respond to of 97611
 
John,

I believe the deal was Intel purchased the foundries where DEC manufactured the alpha however DEC (CPQ) retained the rights to the Alpha technology.

Rob Rob



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