TECHNOLOGY - Aug. 15, 1996
Times Staff and Wire Reports
U.S. Probes IBM-StorageTek Pact: Storage Technology Corp. and International Business Machines Corp. said their mainframe data storage reseller deal is under antitrust review by the Justice Department. However, both companies downplayed the potential threat of the investigation to their alliance, saying the request for documents by the department was routine and that they expect the agreement to go forward. On June 10, the two firms announced an alliance under which StorageTek agreed to build mainframe computer data storage subsystems for IBM. Big Blue would become the main distribution channel for the high-end products. On the New York Stock Exchange, IBM shares rose $1.875 to $111.25 and StorageTek shed $1.50 to $36.
