Intel Corp (INTC)

[SemiconEng]

Intel's Legal Strategy Takes Shape

http://www.forbes.com/technology/2005/09/02/intel-amd-antitrust-cz_dw_0902intel.html
NEW YORK - Intel's lengthy rebuttal to Advanced Micro Devices' incendiary antitrust lawsuit reveals the beginnings of a legal strategy to defend itself against its smaller rival. The plan appears to be not to just simply defend itself against the charges but to deconstruct what it says is AMD's business failures over the years. The message: You screwed up on your own.

The rebuttal also shows that Intel (nasdaq: INTC - news - people ) is not likely to engage in settlement discussions with the company and will fight the case all the way to court. That process could take years.

As the case drags on, AMD (nyse: AMD - news - people ) will have to counter Intel's claims that bad business decisions are to blame for its current market position. Further, AMD also will have to convince PC companies to come forward and publicly bolster its claims of Intel's anticompetitive tactics. If none volunteer, AMD has said it could compel them to disclose what they know. That's not likely to sit well with the PC makers. It's an open question whether they will be happy to do business with AMD after being forced to publicly provide behind-the-scenes information on a crucial supplier.


Gee, it doesn't look like analyists think that "There will be a settlement". No, it's looking more and more likely, that with AMD's planned "Strong Arm Tactics" with their customers, it's more likely that, "AMD's actions will result in pissing off their customers". It's looking more and more like AMD might be cutting off their nose, to spite their face.

GO AMD!