Section A · Page 8
The University Daily Kansan
Tuesday, April 25, 2000
Microsoft condemns proposal
Company says breakup would damage industry
The Associated Press
WASHINGTON — Microsoft Corp. denounced as "extreme and radical" a reported government proposal to break up the software giant yesterday. Its stock price fell both on recent earnings reports and uncertainty about the company's future.
Attorneys for the Justice Department and the 19 states that successfully sued Microsoft for antitrust violations are considering ways to break up the company as a way to stop its anti-competitive practices, a source close to the talks said yesterday. However, any kind of divestiture is part of a "full array of options" being discussed, the source said.
Another person familiar with the talks said the plaintiffs also were considering temporary sanctions that could be imposed against Microsoft while the case made its way to the appeals court.
Microsoft's stock fell 16 percent — or by $12.311/4 a share to $66.62 — in trading yesterday on the Nasdaq Stock Market following word of the proposed breakup. Investors also were disheartened by the company's mediocre earnings report Thursday and the resulting stock downgrades by analysts at SG Cowen Securities Corp., and The Goldman Sachs Group.
The government has until Friday to submit its proposed remedies to U.S. District Judge Thomas Penfield Jackson, who ruled April 3 that Microsoft illegally used its dominance in the operating systems market to hurt competition. The ruling came after a 78-day trial that began in October 1990.
"There is nothing in the trial record or in this case that would justify such an extreme and radical remedy," said Microsoft spokesman Jim Cullinan yesterday. "This
would be bad for Microsoft, consumers and the entire industry."
The company will have until May 10 to respond to the government's proposal, but it may ask for an extension depending on the remedies requested.
A court hearing to consider remedies has been scheduled for May 24.
"If the government goes beyond the scope of this trial with the issues they raise in their filing, we're going to need an appropriate amount of time to respond," Cullinan said.
The Wall Street Journal, USA Today and The Washington Post reported yesterday that the government favored a breakup of the company, although details varied regarding how parts of the corporation would be spun off.
would be spilt off.
One reported option would be to split Microsoft into two or three companies selling separate products, such as the Windows operating system and Internet content. Another would be for Microsoft to divest its popular Office software.
Nike chairman pulls donation from Oregon
KU relationship with company OK, official says
By Doug Pacey writer@kansan.com Kansan staff writer
Phil Knight, chairman of Nike, Inc., pulled $30 million of his own money that he was going to give the University of Oregon to help renovate its stadium because the university joined an anti-sweat-shop group.
Knight is a Oregon alumnus and has given the university about $30 million during the past 10 years. The Chronicle of Higher Education reported yesterday. Like the University of Kansas, Oregon has an athletic contract with Nike.
Oregon decided to join the Worker Rights Consortium, an anti-sweatshop activist group, a few weeks ago after a year of deliberations by the student body
and Student Senate, The Chronicle reported. A press release from Nike indicated that Knight's qualm with the university was that it did not join the Fair Labor Association when it joined the WRC.
The FLA is an established, government sponsored anti-sweatshop group that includes more than 130 universities—including the University of Kansas—and apparel makers. The difference between the WRC and the FLA is that Nike and other apparel manufacturers are not allowed to join the WRC, as companies are excluded from participating in the process, the press release said.
"Nike is not opposed to higher standards or new concepts that achieve the goals that we all seek
to have humane, safe working conditions for workers in developing economies and the U.S." the statement said. "This debate is about the principle of having one code of conduct and one monitoring system that provides protection for workers and allows economic activity to flourish.
"The WRC is a loosely formed organization whose operating tenets include a 'gotcha monitoring' system and an ambiguous living wage provision."
Kyle Browning, Overland Park junior and member of the University's Amnesty International chapter, said he thought the University of Kansas should join the WRC.
"I think the WRC's rationale is that corporations do their monitoring and report to the FLA, and the FLA just kind of assumes they're telling the truth," he said.
But the University of Kansas has no plans to join the WRC yet, said Paul Vander Tuig, the KU director of trademark and licensing.
"I think it's a bit early to join the WRC," he said. "I know a number of colleges across the country have joined the group or joined conditionally, but it's a group that isn't even formalized yet."
Vander Tuig said that he had not
heard that Knight decided not to give Oregon the money because it joined the WRC. He also said that Nike had not told the University of Kansas not to join the WRC.
He said that if the University were to consider joining the WRC, it would take Nike's position into consideration. However, he said he wasn't worried about upsetting the company because he thought the University of Kansas would never get as much money at one time from Nike as Oregon would have received.
The press release also said Nike had increased its minimum age requirement for footwear workers to an industry-high of 18 years, disclosed the locations of 45 factories producing collegiate licensed apparel, improved the air quality in its factories and raised wages more than 70 percent during the last 20 months in Indonesia.
The press release said the University of Oregon and Nike, as well as other schools that had joined the WRC, would still remain partners.
Preferred Villain
Damian Siwek, Wichita senior and guitarist with the band Preferred Villain, plays during a gig at The Bottleneck, 737 New Hampshire St. Saturday. It was the second live performance for the band. Photo by Brad Dreier/KANSAN
Six shot at National Zoo
The Associated Press
WASHINGTON — A feud between youths at the National Zoo ended in a hail of gunfire about 5 p.m. yesterday, leaving one boy brain dead and wounding five other children, police officials said.
Police were investigating whether the shooting was gang related and sought at least one teen-age gunman who fired a handgun into groups of youths after a confrontation escalated to bottle throwing and then shots, according to authorities and witnesses.
The victims ranged in age from 11 to 16 and were attending a century-old post-Easter gathering at the zoo celebrating African-American families.
Hours after the shooting police still
circled the zoo in helicopters. "We are looking into the possibility that it is gang-related, but we are not certain," said Police Chief Charles Ramsey.
A 12-year-old girl also was in serious condition with a wound to the pelvis, a 14-year-old boy was in serious condition with a leg wound, and three other youths were hospitalized with less serious injuries, according to officials at the hospitals.
In addition to the shootings, a seventh victim suffered a seizure and a pregnant woman was taken to the hospital after going into apparent labor, authorities said.
The zoo planned to remain closed today. "It is just a terrible, terrible tragedy. Our hearts go out to the families," zoo spokesman Robert Hoage said.
Choose The Right Path!
Don't be stuck at the crossroads! A KU MBA will add value to your undergraduate degree, whether you're in Liberal Arts, Engineering, or somewhere in between. The median starting salary for last year's class was $56,000.The roads are wide open, make the right choice.
To find out more details, stop by the Student Advising Center 206 Summerfield Hall or call Dave Collins at 864-7596
The KU MBA www.bschool.ukans.edu
The University Of Kansas School of Business
Walking down the Hill in May? Then join us Wednesday, April 26
Anytime between 6-8 p.m. at the Adams Alumni Center
GRAD FAREWELL
- Enjoy FREE pizza and soda. Gumby's, Pyramid, Lawrence Pizza Co., The Wheel and Papa Keno's will compete for the title "Class of 2000's New Millennium Pizza."
- 50¢ draws available with proper ID.
- Receive a free KU T-shirt, license plate frame, or Jayhawk Koosie when you sign up for a Jayhawk Visa at the Grad Farewell. Or call INTRUST Bank for details at 1-800-222-7458.
- Win great door prizes.
- Learn how you can make KU connections worldwide through involvement with the Alumni Association.
- Attend "Life After KU" sessions and learn more about financial planning, job interviewing and much more. Concurrent sessions offered at 4 p.m. and 5 p.m. on the first floor of the Alumni Center-then stay for free Grad Farewell food, prizes and fun!
Kansas
Alumni
ASSOCIATION Founded in 1883