Ian
> -----Original Message-----
> From: owner-lbo-talk at lists.panix.com
> [mailto:owner-lbo-talk at lists.panix.com]On Behalf Of Doug Henwood
> Sent: Wednesday, January 12, 2000 2:43 PM
> To: lbo-talk at lists.panix.com
> Subject: MSFT breakup in works?
>
>
> TheStandard.com - January 12, 2000
>
> Microsoft calls proposal to divide it "extreme and radical."
>
> By Elizabeth Wasserman
>
> Is a Microsoft breakup in the works?
>
> A consensus appears to be emerging among government prosecutors in
> settlement talks with Microsoft that they propose the company be
> broken up, as opposed to proposing behavioral modifications, a state
> source confirmed today.
>
> The confirmation comes on the heels of a USA Today report Wednesday
> that government attorneys want to split Microsoft into two different
> companies, one selling the Windows operating system and another
> selling software applications.
>
> Several state and federal government sources questioned that
> characterization.
>
> "The story is inaccurate in several important respects, and it does
> not accurately represent our views," said Gina Talamona, a U.S.
> Department of Justice spokeswoman.
>
> "That report has significant deficiencies in terms of our position,"
> said Wayne Klein, who heads the antitrust bureau in Utah, one of 19
> states involved in the Microsoft antitrust case.
>
> Other government sources, however, say the report accurately reflects
> a growing consensus among state and federal prosecutors about options
> to present to Microsoft during settlement talks. Those talks have
> continued for over a month in Chicago with a court-appointed
> mediator, and there have been few leaks about the tenor of the
> negotiations.
>
> Microsoft officials quickly jumped on the report to point out the
> "irony" of a break-up proposal when one of the company's largest
> rivals, America Online, recently announced a proposed $350 billion
> merger with media conglomerate Time Warner.
>
> "The notion of a breakup of Microsoft is an extreme and radical
> proposition that is not just harmful to consumers but harmful to the
> industry as a whole," said Jim Cullinan, a Microsoft spokesman. "It's
> ironic considering Monday's announcement that AOL and Time Warner are
> merging and will be competing directly with Microsoft."
>
> On Tuesday, Microsoft is scheduled to submit to U.S. District Court
> Judge Thomas Penfield Jackson its proposed findings of law in the
> government's antitrust case, which began in October 1998. Last
> November, Jackson issued his "findings of fact," in which he wrote
> that the company had a monopoly over Intel-based personal computer
> operating systems and has used its power to stifle innovation and
> harm rivals. He is expected to rule on whether the company violated
> antitrust laws by spring. Oral arguments in the case are scheduled
> Feb. 22.
>
> A Utah court this week accepted a settlement in an unrelated
> four-year-old antitrust case involving Microsoft and Caldera. While
> terms were not disclosed, Microsoft said it would take a charge of
> three cents per share on earnings in the final quarter, which could
> reportedly amount to more than $150 million.
>