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| Version 5 | Version 6 |
|---|---|
| Intel and AMD settle legal rows | Intel and AMD settle legal rows |
| (about 3 hours later) | |
| US chip maker Intel has agreed to pay rival AMD $1.25bn as part of a deal to settle all outstanding legal disputes between the two companies. | US chip maker Intel has agreed to pay rival AMD $1.25bn as part of a deal to settle all outstanding legal disputes between the two companies. |
| The two firms said the settlement covered all anti-trust litigation and patent disputes. | The two firms said the settlement covered all anti-trust litigation and patent disputes. |
| "While the relationship between the two companies has been difficult in the past, this agreement ends the legal disputes," the two firms said. | "While the relationship between the two companies has been difficult in the past, this agreement ends the legal disputes," the two firms said. |
| AMD's shares jumped by as much as 23% following the announcement. | AMD's shares jumped by as much as 23% following the announcement. |
| 'Step closer' | 'Step closer' |
| "While it pains me to write a cheque at any time, in this case I think it was a practical settlement," said Intel's chief executive Paul Otellini. | |
| "It was a good compromise between the two companies, and in many ways it was a small multiple of the potential damages that could be awarded in a jury trial." | "It was a good compromise between the two companies, and in many ways it was a small multiple of the potential damages that could be awarded in a jury trial." |
| Under the terms of the deal, the two firms have agreed a five-year cross licensing agreement, with each agreeing to give up claims of breaching previous agreements. | Under the terms of the deal, the two firms have agreed a five-year cross licensing agreement, with each agreeing to give up claims of breaching previous agreements. |
| AMD's chief executive, Dirk Meyer, said the deal created a more level playing field and the company was now "one big step closer to achieving our bold vision". | AMD's chief executive, Dirk Meyer, said the deal created a more level playing field and the company was now "one big step closer to achieving our bold vision". |
| Competition regulators in Asia, Europe and the US have all taken action against Intel because of complaints by AMD. | Competition regulators in Asia, Europe and the US have all taken action against Intel because of complaints by AMD. |
| Europe's competition spokesman, Jonathan Todd, said he had taken note of the settlement, but that it did not change Intel's duty to comply with European competition law. | Europe's competition spokesman, Jonathan Todd, said he had taken note of the settlement, but that it did not change Intel's duty to comply with European competition law. |
| Customers 'bullied' | Customers 'bullied' |
| Intel makes 80% of the microchips that power personal computers. | Intel makes 80% of the microchips that power personal computers. |
| One of the cases filed in Delaware in the US accused Intel of using its market dominance to get customers to buy from them instead of AMD. | One of the cases filed in Delaware in the US accused Intel of using its market dominance to get customers to buy from them instead of AMD. |
| Douglas McIntyre, analyst at 24/7 Wall street, said AMD's case was pretty strong in alleging that Intel "bullied customers using its huge market share". He added that AMD should have got a better price for shareholders. | Douglas McIntyre, analyst at 24/7 Wall street, said AMD's case was pretty strong in alleging that Intel "bullied customers using its huge market share". He added that AMD should have got a better price for shareholders. |
| As a result of the settlement, Intel updated its fourth-quarter financial forecasts. It now expects spending to be about $4.2bn - up from $2.9bn. | As a result of the settlement, Intel updated its fourth-quarter financial forecasts. It now expects spending to be about $4.2bn - up from $2.9bn. |