Parsing Intel's Impact on Dell
Dell Inc. (DELL) and Michael Dell, its founder and chief executive, may soon help to answer a question that has long puzzled the tech industry: just what role did rebates from Intel Corp. (INTC) play in the computer maker’s finances?
Dell said last week that it and Mr. Dell were in talks with the Securities and Exchange Commission to settle civil allegations that they violated securities laws in connection with Dell’s dealings with Intel, a longtime supplier of microprocessor chips. At issue, people familiar with the situation say, is whether Dell should have disclosed rebates it received from Intel to investors.
Such rebates have been a focus of government antitrust suits against Intel in the U.S., Europe, Japan and South Korea, which allege that the chip giant has improperly used financial incentives to its customers to discourage major computer makers from buying chips from rival Advanced Micro Devices (AMD).
