BOSTON/BRUSSELS | Thursday 6 January 2011 4 pm EST.
BOSTON/Brussels (Reuters) - Intel has offered concessions to win antitrust clearance from European Union for the purchase of McAfee Inc. Security software maker $ 7.7 billion.
Shares of McAfee, the manufacturer of security software after Symantec Corp., no. 2 increased 1.8% on the news Thursday, while Intel shares dropped by 0.8%.
The Commission, the 27-nation EU regulatory oversight body said on its website that it has extended the date limit for January 26, 12 January after commitments to address competition problems have been submitted.
"We continue to work with the Commission," Intel spokesman Chuck Mulloy said to Reuters. "Our expectation continues to be that we get this case ended sometime in the first half of 2011."
He did not comment on concessions, Intel has made in its efforts to win approval of what would be the largest ever acquisition.
The commission is concerned that Intel may incorporate elements of fight against the virus McAfee technology into its widely used microprocessor for personal computers, chips giving him an unfair advantage over rivals, according to two people familiar with the case.
John Briggs, an antitrust expert based out of Washington with Axinn Veltrop Harkrider LLP, said that he suspected that Intel has agreed to take steps to ensure competing McAfee could still on computers until they were sold to consumers and businesses.
Antivirus software, makers of frequently forge trafficking of PC manufacturers to regain their software on desktop PCs. Analysts say it is one of the roads more efficient by which they sell their software.
"I am reasonably confident that Intel has agreed to do so is to give competitors access to McAfee for desktop computers that has already built in microprocessor of McAfee."
December 21, Intel already won clearance for the agreement of the Federal Trade Commission in the United States.
Plan to buy Intel McAfee highlights how security has become a concern in a world of devices enabled on the Web. McAfee swallowing give Intel to sell high-profit security software alongside its customers of traditional PC microprocessors.
Analysts say that intel could differentiate its processors per chip design speed up scans of security typically conducted by McAfee software or technology which makes it less vulnerable gadgets to hacker attacks.
Are concerned European regulators that could create an unfair advantage for Intel over rivals such as Symantec, according to sources familiar case.
(Additional by Noel Randewich in San Francisco.) (Editing by Gary Hill)
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