News - Investors indifferent about Intel fine

[HEXUS]

The chip giant?s share price actually opened up after the announcement of its billion euro fine.

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[danroyle]

1 billion euros is pretty poor how much money did they stop amd from making over the years from these practices.

[Infinite]

haha, not even investors care....

[drunkenmaster]

the market doesn't respond instantly, the day the news is confirmed, the stock will go down. AS in, we've got months if not years of appeals before any fine goes through, till that happens intel continue to make money hand over fist and this news is largely irrelevant.

I'm under the impression that an appeal will be successful most likely in at least reducing the fines, they'll argue that even if they didn't pay the likes of dell or whoever else to not stock amd, and other companies they paid, amd really couldn't have manufactured enough chips to supply them which is a valid point.

Either way, 1billion 500million, or nothing to be paid is a long way down the line before it happens hence the stock didn't go down.

Remember RBS announced a massive loss, plus almost 4 billion iirc in bad debt fee's to go with it and their stock went up again IIRC around 20% that day. Such is life, AMD also announced some bad news and their stock went up.

Remember while some people think the fine was high, other people will think its lower than they had assumed, this case wasn't out of the blue so the share price over months by the people who know these things is where it is at including the knowledge of the likely fine and a guess of how much it would be.

It went up not because of the fine, but because the tech sector, well Intel/amd have done great the past week. AMD peaked at 4.67/4.70 today, the highest its been in months, up almost a dollar compared to 2 weeks ago at 3.80 where it had been bouncing up and down between 3-3.80 for near enough a month.

[shaffaaf27]

where does the money go?

[kalniel]

where does the money go?

Rebate on EU contributions.

[kingpotnoodle]

where does the money go?

Probably to pay the court's expenses, or maybe some Euro MPs need a flat in Strasbourg...

[xenos]

AS in, we've got months if not years of appeals before any fine goes through, till that happens intel continue to make money hand over fist and this news is largely irrelevant.

Actually the fine has to be paid within 3 months. It will go into a holding account if they appeal but even Intel is going to miss £1 billion at least a bit.

The share price rise is probably because the fine was less than anticipated, it was only 4.15% of Intel's turnover, the EU had the ability to fine them up to 10% and they probably will if Intel don't change their ways.