Microsoft last week launched a hostile US$44.6bn takeover bid to buy Web giant Yahoo. If the deal goes ahead it will be the latest in a line of multibillion-dollar mergers and acquisitions the tech sector has witnessed in recent years.
Although it plans to lay off thousands of workers if its merger with Compaq Computer goes through, Hewlett-Packard is also offering hefty bonuses to some 6,000 key employees it wants to keep.
Experts predict that in the current slowdown, US regulators will be loath to cause further economic upheaval by blocking the proposed $25bn merger of rivals HP and Compaq.
The merger between Hewlett-Packard and Compaq Computer is expected to go through stiff regulatory review, with regulators taking an especially close look at PC distribution, say legal specialists.
Advanced Micro Devices launched a marketing campaign against Intel on Wednesday, running full-page ads in newspapers to outline the reasons for its antitrust lawsuit and to issue a call to action.
Although AMD has painted Intel as a bully, execs who've dealt with company draw a more ambiguous picture.
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