Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Rambus (RMBS) - Eagle or Penguin -- Ignore unavailable to you. Want to Upgrade?

To: TST who wrote (21710)	6/4/1999 7:11:00 PM
From: MileHigh	Respond to of 93625

hum...... Yahoo! News Technology Headlines Friday June 4 4:29 PM ET IBM, Acer To Announce $8 Bln Product Swap Monday SAN FRANCISCO (Reuters) - International Business Machines Corp. (NYSE:IBM - news) and Acer Group Inc., Taiwan's largest personal computer maker, are expected to announce Monday a pact to sell products to each other worth about $8 billion over seven years, industry sources said. In the product-sharing deal, which continues their ongoing relationship, IBM will sell its floppy and hard disk drives and some intellectual property to Acer, while Acer will sell monitors and other peripheral products it makes to IBM. A spokesman for Acer America Inc., the U.S. arm based in San Jose, Calif., said the two companies would make a joint announcement Monday, but declined to provide any further details. A spokeswoman for IBM, based in Armonk, N.Y., declined to comment. Recent trade press reports have speculated that the companies were going to announce another so-called OEM (original equipment manufacturer) deal whereby Acer would manufacture more PCs for IBM. But an industry source said the reports were wrong, and that the deal is a ''long-term relationship of buying and selling each other's products.'' Acer already manufactures a significant percentage of PCs that IBM ships under its Aptiva PC brand, targeted to home users, analysts said. For IBM, the deal represents another in a string of multi-billion dollar product-supply deals. In March, IBM and Dell Computer Corp. (Nasdaq:DELL - news) announced the first of these mega-supply deals, valued at $16 billion over seven years. IBM agreed to supply Dell with a range of key computer components including disk drives, chips, network attachments and monitors. Also in March, IBM and corporate data storage equipment maker EMC Corp (NYSE:EMC - news) . agreed on a $3 billion computer parts and technology pact, over five years. EMC is expanding its purchases of advanced IBM disk drives. ''IBM has made it clear that they are going to have a number of additional announcements of more of these kind of deals with potential customers,'' said Gary Helmig, a SoundView Technology Group analyst. IBM shares rose $2.94 to $115.875 in Friday trading on the New York Stock Exchange.