To: LindyBill who wrote (19163 ) 3/29/1999 3:01:00 PM From: Hal Rubel Read Replies (3) | Respond to of 74651
Microsoft Shareholders May be Coming Into some Big Cash in 1999 Yahoo! News Business Headlines Monday March 29 12:25 AM ET "Source-State To Offer Microsoft Remedies By David Lawsky WASHINGTON (Reuters) - State attorneys general preparing for antitrust settlement talks with Microsoft Corp. (Nasdaq:MSFT - news) Tuesday may ask the company to give up control of the Windows operating system, a source familiar with the case said Sunday. The talks are to take place one day before a judge rules on when the company's long-running antitrust trial is to resume. When the trial adjourned last month, District Judge Thomas Penfield Jackson told lawyers for both sides to use their time wisely and discuss a settlement. A strategic plan prepared for the states lays out the possibility of a forced auction of Windows licensing rights. That is one of several proposals the state attorneys general have been looking at in a white paper prepared recently. No final decision has been made which proposals -- if any -- to lay out at Tuesday's talks, the source said. The existence of the white paper was first reported in Sunday's editions of the Seattle Times. One of the ways to redress Microsoft's past abuses of its monopoly power would be to sell intellectual property rights to Windows 95, Windows 98 and Windows 2000 to two or three companies, according to the source. Microsoft would retain the right to market and develop its own versions of the software and Microsoft shareholders would get ''reasonable compensation,'' the Source said. ''The proposal would actually break up and render impotent the Windows monopoly, which is the source of Microsoft's power,'' the state report concluded. Neither the Justice Department nor Microsoft had any comment on the report. A person familiar with the case said Tuesday will be a time to test the seriousness of Microsoft's commitment to a settlement. Microsoft Corp Chief Executive Officer Bill Gates said last week he would prefer to settle the landmark antitrust case, in which the Justice Department and 19 states allege his company abused monopoly power in the market for personal computer operating systems. Gates said any settlement must permit Microsoft to retain the ''ability to innovate Windows, the ability to maintain the integrity of Windows as a fully designed product.'' ''As long as we can keep those intact it would be great to settle the thing,'' Gates said at an industry conference, shortly before the company gave the government a four-page settlement offer. Another alternative being considered by the states would make Windows available publicly on an ''open source'' basis to third-party developers or at least disclose certain parts of the source code, the source said. Microsoft, which tightly guards source codes to its products, would ''retain the right to charge a reasonable licensing fee'' for any third-party use of the intellectual property, according to the states' report. Government officials are seeking a settlement that would curb Microsoft's ability to engage in anti-competitive practices, rather than monetary damages from the software giant, according to a person close to the case. The case is about ''a pattern and practice of anti-competitive conduct involving Microsoft using its dominance to stifle innovation and shortchange consumers to benefit itself,'' the source said. Microsoft lawyers may be emboldened by their dramatic Appeals Court win last year, when a three judge panel overturned an order from Judge Jackson restricting the company's business practices in a separate legal proceeding. But government lawyers are confident they did a good job detailing their case before Jackson in the current trial. The earlier order that was overturned was based only on a few hearings. The day after Tuesday's talks, both sides will appear in court to discuss when the trial will resume. Once expected to last just six to eight weeks, the trial which began on Oct. 19 and adjourned on Feb. 26 may not restart until May. Up to six rebuttal witnesses are expected to testify, which could require another month." If true, would there be a LARGE cash dividend for shareholders? Hal