Microsoft CFO indicates progress in settlement talks

Reports are circulating once again that Microsoft may be working towards a

settlement in the antitrust case. The suggestion came directly from Microsoft

chief financial officer John Conners, but it was not clear if he was expressing

Microsoft’s wishful thinking about an ideal outcome, or whether the government

and the software giant are truly making progress towards a settlement.

Connors told a group of Wall Street market analysts that Microsoft sees a

window of opportunity to settle the case without having to be broken into

several entities. "They said they would have no change in their structure or

their ability to innovate," said Debra Koch with Sudder Kemper. "My sense was

that there was something being thrown about in the talks," said Walter

Winnitzki, an analyst with Chase Hambrecht & Quist Winnitzki who attended

the meeting with Connors.

Another prominent Wall Street analysts said that in talking with Connors

recently, he was told that the company’s top management is focused on working

out a settlement. Reportedly, Connors was immediately criticized Tuesday by

Microsoft’s legal experts for making the comments as the company is trying to

work out a deal and has adopted a policy of not commenting on anything related

to those closed-door discussions.

The issue of settlement is weighing in heavy as Microsoft’s stock has

fallen from around $108 to $89. Any indication of a settlement would instantly

boost the stock, while failure to reach an agreement would keep the stock

depressed as investors remain cautious until the case is decided one way or

another.