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"We believe that this idea is extremely short-sighted andthreatens the value of your investment."The letter was signed by Chemed Chief Executive KevinMcNamara and Chairman George Walsh. It added that a separation of the Roto-Rooter and VITASbusinesses is not in shareholders' interest during the globaleconomic downturn, but that management would consider abreak-up "when market and economic conditions are right." Chemed's annual meeting of shareholders is scheduled forMay 29 in Cincinnati. This effectively prevented customers - and ultimately consumers - from choosing alternative products.* Intel paid computer manufacturers to halt or delay the launch of specific products containing competitors' x86 CPUs and to limit the sales channels available to these products.* Computer manufacturers affected includes Acer, Dell, HP, Lenovo and NEC. (Reuters) - The European Commission imposed a record 1.06 billion euro ($1.45 billion) fine on chipmaker Intel Corp on Wednesday and ordered it to halt illegal rebates and other practices intended to squeeze out rival AMD.
TechnologyHere are the main details of the 542-page decision:EU FINDINGS:* Intel gave wholly or partially hidden rebates to computer manufacturers on condition that they bought all, or almost all, their x86 CPUs processors from Intel.* It also made direct payments to a major retailer on condition it stocked only computers with its x86 CPUs. About 6 percentage points of the gross margin drop that Intel experienced in the first quarter came from factory under-utilization charges, Intel has said.But research from iSuppli last week showed demand for portable phones and computers may cause factories to run closer to capacity. But some analysts said the outlook was conservative, and Reuters Estimates showed analysts expecting a slight increase in each quarter for a year-end total of $30.3 billion.But that would still be more than $7 billion less than last year's revenue, with earnings per share seen falling more than 40 percent to 53 cents a share, according to Reuters Estimates.Shares in the Santa Clara, California-based Intel rose to $15.64 in extended trading, up 2.8 percent from their Nasdaq close of $15.21.UTILISATION RATESAnalysts say Intel's biggest concern is filling its factories. TechnologyPaul Otellini told investors second-quarter sales depend on how they fare in June but "so far, so good" -- in remarks that sent Intel's shares up as much as 4 percent in extended trading."We are halfway through Q2," he said. "In terms of our order pattern and our billing pattern, it's a little better than expected."Intel, which controls 80 percent of the microprocessor market, is seen as a bellwether for the personal computer and technology industry.
As far as long-term competitive advantage, Intel still has it.""Over the long run, Intel still has the upper hand in the industry." Technology Japan. SANTA CLARA, California (Reuters) - Intel Corp's orders and billing patterns so far in the second quarter have been slightly better than expected, the chief executive of the world's largest chip maker said on Tuesday. On the other hand, AMD has recently come out with some exciting new products, and they could claim that hey, you know, we've got great products and the only thing standing between us and more market share is Intel's heavy hand."ANDY NG, ANALYST, MORNINGSTAR:"Intel's competitive advantage is not that they cheated or anything like that It's that they are much larger than their smaller rival AMD. On the other hand Intel right now has a very strong product line and it could be that even if Intel didn't engage in these practices, AMD still might face hurdles in gaining market share because of Intel product advantages. They are not seeking to favor any one technology or platform, but they want to keep the markets open to competition and innovation, which will ultimately benefit consumers."NATHAN BROOKWOOD, ANALYST, INSIGHT 64:"The ruling is hugely important.
AMD has been out there for the last five or six years screaming that Intel has been keeping them from getting free access to markets.""If Intel's marketing practices are precluded in Europe that could have some impact on the competitive dynamics for AMD in Europe and it might have some spillover in terms of what happens in the U.S.""It certainly could lead to AMD gaining more market share than it has been able to gain to date. authorities are investigating Intel as well.""It is a major decision that shows the Commission is serious about curtailing abusive behavior of dominant companies, especially in the high-tech sector.""The Commission is trying to ensure that dominant companies don't foreclose the market to competitors, lock in customers and shut down innovation. They've got a big share of the market right now, and it's difficult for me to see how anyone can break that.""Some say AMD may increase their market share as a result, but I'm not so sure about that. AMD doesn't have suitable technology for a range of notebook PCs, and it might be difficult for them to pick up any slack that Intel is leaving."DAVID ANDERSON, LAWYER, BERWIN LEIGHTON PAISNER:"Despite its strong defense, Intel is facing a wall of regulatory resistance to its business practices around the world with antitrust infringement decisions against it now in Japan, Korea, the EU, and the U.S. It is only a financial fine, not changing the way Intel is operating today."GIULIANO MERONI, PRESIDENT OF AMD EMEA"Today's decision of the European Commission is historic, and it is a game changer for the global IT industry."PRANAB SARMAH, ANALYST, DAIWA INSTITUTE OF RESEARCH"Intel will either have to take a profit margin cut or raise prices, which will hurt either themselves or the customer if they do raise prices. Technology | JapanThe fine is the biggest ever imposed on a company by the European Union's executive arm for abuse of market dominance, surpassing the 497 million euro penalty levied on Microsoft in March 2004.****************************************************************KEY POINTS:* EU fines Intel record 1.06 billion euros ($1.45 billion)* Orders immediate halt to illegal practices* Says Intel practices hurt "millions of European consumers"* Fine is 4.15 percent of Intel's 2008 sales* Intel has three months to pay fine* EU says Intel paid computer makers to halt or delay products with rival chips* EU says Intel paid major retailer to exclude computers with chips made by rivalCOMMENTARY:ROBERT JAKOBSEN, JYSKE BANK"It means nothing strategically. (Reuters) - The European Commission fined chipmaker Intel a record 1.06 billion euros ($1.45 billion) on Wednesday and ordered it to stop giving computer firms illegal rebates to squeeze rival AMD out of the market.