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

To: Perry Ganz who wrote (16810)	2/23/1999 8:27:00 PM
From: t2	Read Replies (2) \| Respond to of 74651

This might help tomorrow's trading. I think it should be considered good for the stock especially since we got all that negative courtroom performance by the company. quote.bloomberg.com Microsoft Subpoenas AOL, Netscape, Sun About 3-Way Transaction Microsoft Subpoenas AOL, Netscape, Sun About 3-Way Transaction Washington, Feb. 23 (Bloomberg) -- Microsoft Corp. subpoenaed America Online Inc., Netscape Communications Corp. and Sun Microsystems Inc. seeking documents about the three-way transaction they announced in November and the possible effect it could have on the software giant's antitrust case. Sun Microsystems and America Online today confirmed receiving a subpoena from the world's largest software maker in mid-February. Netscape wasn't available for immediate comment. In November, AOL, the nation's largest online service, offered to acquire Netscape for $4.3 billion, and reached a side agreement to buy $500 million in high-tech equipment from Sun Microsystems. A Microsoft official confirmed the company had sent subpoenas to all three companies, seeking information related to the November transaction and its potential impact on competition in Internet browsing software, online services, operating systems and Web site technology. The three-way transaction could become a key issue in the antitrust suit against Microsoft by the U.S. Justice Department and 19 states. That case, currently being argued in a federal trial court in Washington, accuses the world's largest software maker of using illegal tactics to maintain its Windows monopoly in the market for personal computer operating systems. Microsoft is alleged to have sought to snuff out competition to Windows from Internet browsers such as Netscape's Navigator, which have the potential to run software much as an operating system does. Microsoft denies the charges, and has cited the AOL-Netscape- Sun Microsystems transaction as proof it competes in a dynamic industry where new leaders emerge practically overnight. U.S. District Judge Thomas Penfield Jackson, who is hearing the case without a jury, lent credibility to Microsoft's assertion in mid-December. Before the trial broke for a two-week holiday recess, Jackson asked both sides to be prepared to discuss the transaction, saying it could represent ''a very significant change in the playing field insofar as this is industry is concerned.'' A Microsoft official said the company had requested the information at that time and didn't get any response from the three companies. Jackson then issued the subpoenas. Seeking Information In addition to information about the three-way transaction, Sun spokeswoman Lisa Poulson said Microsoft is seeking any documents that mention the antitrust suit and any communications with federal or state antitrust enforcers. Microsoft also wants information on communications Sun has had regarding the three-way transaction with Apple Computer Inc., International Business Machines Corp., Novell Inc., and Oracle Corp. Sun and AOL are trying to get at least some of the documents to Microsoft by Friday, when the trial is expected to go on hiatus until April 12. ''The deal took the air out of the government's case because it showed how completely volatile and dynamic competition is in the high-tech industry,'' said Microsoft spokesman Mark Murray. Microsoft officials argue that AOL likely will allow its current agreement to offer Microsoft's Internet Explorer browser almost exclusively to its 16 million online users to expire once the acquisition is completed. Should that occur, they contend, it could breathe new life into Netscape's Navigator browser, which the government alleges suffered because of illegal competition. So far, AOL maintains it won't change its agreement with Microsoft, which provides it with a position on the first computer screen users see when a Windows-based personal computer is turned on. Antitrust enforcers contend the November transaction doesn't affect the illegality of Microsoft's behavior or the allegation that it misused its monopoly to impede competition. NYSE/AMEX delayed 20 min. NASDAQ delayed 15 min. Access More Information and Services Above ©1999 Bloomberg, LP. All rights reserved