EditorsAbout the SiteComes vs. MicrosoftUsing This Web SiteSite ArchivesCredibility IndexOOXMLOpenDocumentPatentsNovellNews DigestSite NewsRSS

05.24.09

Microsoft Sued Over Its Corruption in Switzerland, Microsoft Debt Revisited

Posted in Europe, Finance, Fraud, Law, Microsoft, Red Hat at 2:23 am by Dr. Roy Schestowitz

Switzerland money

Summary: Microsoft is sued by Red Hat for secret deals while the red ink seems to be quietly dripping

MICROSOFT’S illegal dealings in Switzerland are a subject that we wrote about earlier this month in:

Switzerland, being a nation of banking for the most part at least in people’s minds, thrives in trust and responsibility. Swiss citizens knew what Microsoft was up to and they responded:

Asking Switzerland for more neutrality …

[...]

Well – a lot of people in Switzerland and almost 20 companies are not really happy. Among these companies is Red Hat. So Red Hat is joining the official appeal that asks the court to stop this contract, force BBL to evaluate the alternatives that exist and are in active use, even in Switzerland in the offical way of public tendering.

Effectively the appeal asks the BBL to defend competition. In a vendor neutral way. Based on technical merits. I think it is fair to ask. Let the court decide.

And ofcourse the irony of asking Switzerland of all countries to act in a (vendor-) neutral way is quite funny.

As the above already suggests, Red Hat’s legal team is stepping in.

Red Hat is a leader of an appeal by 18 technology companies of a Swiss government agency’s award of a no-bid contract to Microsoft. The challenge raises important issues of openness in government and of a level playing field for open source and other competitors of Microsoft. Red Hat is seeking a public bidding process that allows for consideration of the technical and commercial advantages of open source software products.

There is some press coverage only from Peter Judge, but hopefully the word will spread and inspire other countries to do the same thing. It is certainly a broader issue.

£8 million a year to Microsoft, with no public bidding. And that’s just the tip of the iceberg, say open source activists

Linux vendor Red Hat, and 17 other vendors, have protested a Swiss government contract given to Microsoft without any public bidding. The move exposes a wider Microsoft monopoly that European governments accept, despite their lip service for open source, according to commentators.

The Red Hat group has asked a Swiss federal court to overturn a three-year contract issued to Microsoft by the Swiss Federal Bureau for Building and Logistics, to provide Windows desktops and applications, with support and maintenance, for 14 million Swiss Franc (£8 million) each year. The contract, for “standardised workstations”, was issued with no public bidding process, Red Hat’s legal team reports in a blog – because the Swiss agency asserted there was no sufficient alternative to Microsoft products.

For Microsoft to stoop down to these tactics of secret deals is not particularly surprising. See the following writings about Microsoft’s financial situation, which suffers from endless dumping of software and hefty fines:

As that last link shows, Microsoft is already taking debt. In fact, Microsoft’s debt is now receiving the blessing of a criminal company, which gives Microsoft (MSFT) debt a high rating.

DaemonFC says that “Microsoft is trying to sell debt bonds” and Twitter explains that “the $30 billion of cash had conflicts with other reports of $20 and it’s more likely they have none.”

“Microsoft is actually done with buybacks.”Further he explains: “at the end of 2008 they said they would go $20 billion in debt to buy $40 billion of their shares. Over the last couple of weeks there were a number of articles that acted like this is what they were doing. I thought they had already done their buy backs.”

Microsoft is actually done with buybacks. They announced it one month ago and it is odd because the company has purchased its stock heavily for many years. At that stage, namely the point where undisclosed buybacks are complete (their scale is disclosed, not the purchasing pace), according to their plans they would be about $5 billion in debt. Unless they cut these buybacks short, it would only make sense for Microsoft to be in debt right now. But as Twitter says, “If Microsoft is done with buybacks, why are there so many BS articles about it? [...] and this earlier article acts as if no one was sure.” To quote: “We know not why a company the size and shape of Microsoft needs to raise money through debt issuance–it already has over $30 billion in cash at hand on its books–but if this is a cost-of-capital initiative that leads to the company buying back some of its own float, shareholders may be in for a treat.

What exactly is going on here? Someone is not telling the whole truth as there are contradictions that we are able to identify.

“There is such an overvaluation of technology stocks that it is absurd. I would include our stock in that category. It is bad for the long-term worth of the economy.”

Steve Ballmer

Share this post: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Digg
  • del.icio.us
  • Reddit
  • co.mments
  • DZone
  • email
  • Google Bookmarks
  • LinkedIn
  • NewsVine
  • Print
  • Technorati
  • TwitThis
  • Facebook

If you liked this post, consider subscribing to the RSS feed or join us now at the IRC channels.

Pages that cross-reference this one

A Single Comment

  1. amd-linux said,

    May 24, 2009 at 4:34 am

    Gravatar

    Roy,

    while not being an expert in US GAP, it could be possible that

    - cash as accounted in the MS balance sheet care mostly short and medium term bonds, not real cash or account deposits at a bank
    - the actual losses in valuation of these bonds are not being reflected fully in their balance sheet because as the are accounted as “HTM”, hold to maturity, instead of mark to market, in the hope that the issuer of these bonds can repay them, but there is currently no market with fair prices or huge spreads.

    So, in essence, their balance sheets show us huge “cash” reserves but that might give a wrong picture about their liquidity. And liquidity is want you need – cause with liquidity you pay the bills. If you assets are not liquid, you might die as a rich man, so to say :-)

    Banks did not collapse because they ran out of assets but in the cases I am familiar with, they financed long term credits they issued with short term credits they borrowed – but when the market dried out, boom…… although they had this huuuuge assets in their portfolio.

    So maybe MS manouvred itself in a similar situation, which looked very attractive until 9 months ago, as you could realize huge interest rate profits by refinancing long term, high interest rate credit facilities with short term low rate loans.

    This is my personal speculation, I have not the slightest clue if this is true – but as a model, it IMHO can explain why MS needs to borrow money.

    http://en.wikipedia.org/wiki/Mark_to_market
    http://www.americanbanker.com/glossary.html?alpha=H

What Else is New


  1. Publicly-Available Information About the Meeting of the EPO's Administrative Council

    The EPO "crisis" -- as Board 28 called it -- lingers on because no substantial steps were taken towards Battistelli's removal from Office for his violation of Office rules (his own rules) among other laws that Eponia perceives itself as exempt from



  2. Battistelli's Last Moves Are Desperate Attempts to Crush the Messenger (SUEPO), Which Will Almost Certainly Backfire on (if Not Fire) Battistelli

    By implicitly declaring a war on those who speak truth to power or those who are associated with perceived truth-tellers, Battistelli reinforces the perception that he is protecting the bad people at all cost (even his very own career)



  3. EPO Staff Representative Jesus Areso Explains the Crisis to the Administrative Council

    An intervention by an EPO Central Staff Committee (CSC) member who is under gag orders from Battistelli's regime and cannot speak about his case, which apparently involves truly severe disciplinary actions for merely helping or contributing to a staff survey (not controlled by and paid for by Battistelli)



  4. Shadows of Alleged Criminality Over the European Patent Office (EPO)

    Cases against Željko Topić, a Vice-President at the European Patent Office, are moving forward in Croatia, where he still faces many criminal charges



  5. You Know That UPC is Quite Likely Dead (at Least in the UK) When Even Baroness Neville-Rolfe Dodges the Question (Updated)

    The UPC appears to be a dead end, much like Battistelli's career, not only in the UK but in Europe as a whole (it has been all along designed with London/England/UK in mind)



  6. Short Report From Today's EPO Protest in Munich

    A few noteworthy points about the staff protest which coincided with the Administrative Council's meeting earlier today in Munich



  7. Growing Consensus Even Among Patent Professionals That UPC is Dying Everywhere If Not Just in the UK

    The UPC continues to sink as more and more people come to grips with the complexity of the current situation, irrespective of what countries other than the UK do next



  8. Battistelli Attacks Not Only His Staff But Also Patents Themselves (Their Quality) and the Legal Legitimacy Surrounding the EPO

    Battistelli's EPO is having not only reputation problems but also staff retention problems, patent quality problems and problems pertaining to perception of fair trials or justice regarding patents



  9. Battistelli is Creating an Atmosphere of Terror at the EPO While Exploiting Terror Attacks to Garner Sympathy

    "As if Laurent were a terrorist, the Office has imposed a house arrest and has forbidden him to enter the EPO premises," according to SUEPO, writing about one of its members at The Hague who is "maliciously accused via a fabricated procedure"



  10. Rumours That EPO President Battistelli Got Sacked to be Replaced by Christoph Ernst Appear to be Baseless

    Dr. Christoph Ernst is claimed to be the successor (interim or permanent) of the notorious Battistelli, but these claims have little or no evidence to support them



  11. Links 29/6/2016: SteamOS 2.83 Beta, Alpine Linux 3.4.1

    Links for the day



  12. The EPO Has Become Battistelli's Circus and the Administrative Council Has Been Reduced to (Illegal) Circus Animals Controlled With 'Treats'

    Battistelli's attack on justice and on the rule of law is debated among insiders who have grown increasingly impatient with the Administrative Council's tolerance of Battistelli and sometimes even Kongstad's amazing complicity



  13. The Latest Lies About the Unitary Patent (UPC) Would Have Us Believe That It's Alive and Well

    How patents-centric sites (some of which are in bed with the EPO) have responded to the 'Brexit' vote and why they're not telling us the truth about the Unitary Patent scam (often created and promoted by the same people who run and/or fund such sites)



  14. EPO Management Bunker: “The Bailiff Who Came to Deliver the Subpoena was Escorted off the Property by Five Security Guards.”

    Battistelli has essentially turned the European Patent Office (EPO) into a barracks, where he continues to enjoy immunity from the rule of law and discourages those who wish to challenge this immunity



  15. Keeping the Guard and Securing Society From Software Patents

    The policies over which Indians and Europeans have kept guard are being 'stolen' by vested interests



  16. Benoît Battistelli Further Weaponises His EPO 'Stasi' With CA/52/16

    A glimpse at what Benoît Battistelli will shortly attempt to do to the EPO, in order to cement his power in the face of growing opposition from many directions



  17. EPO Caricature: Administrative Council Control of Benoît Battistelli

    Another new caricature regarding the President of the European Patent Office (EPO) and lack of effective oversight from the Administrative Council (European Patent Organisation)



  18. EPO Caricature: Firing Benoît Battistelli

    The latest caricature regarding the President of the European Patent Office (EPO)



  19. Links 28/6/2016: Red Hat Summit 2016, Hadoop Events

    Links for the day



  20. Today's Media Coverage Says Microsoft Loves Linux, But Today Microsoft Extorted Linux Using Software Patents Again

    Luna Mobile has just been extorted by Microsoft (using dubious software patents, as usual) for using Android/Linux, but Microsoft-influenced media carries on spreading the lie that "Microsoft loves Linux"



  21. New Efforts to Work Around Barriers to UPC in Light of 'Brexit'; Behind These Efforts Are Self-Serving Patent Profiteers

    look at who's trying to work around the latest barriers to the widely-unwanted (by the public) Unitary Patent regime and what is being planned behind the scenes, or behind closed doors (by and for those who stand to profit from the Unitary Patent regime)



  22. Injunction Against Battistelli's Investigative Unit (Known Internally as 'Gestapo') Amid Serious Injustices and Bogus 'Trials'

    SUEPO, the EPO's staff union, steps up its spiel in a case against the "European Patent Organization" as defendant and "SUEPO/VEOB" (Trade Union of the European Patent Office) as claimants



  23. [ES] Con la UPC Muerta por el Resto del Termino de Battistelli, No Hay Razón para que la EPO o el Consejo Administrativo Sigan Manteniéndolo Más

    Pensamientos acerca de lo que pasará al líderazgo de la EPO después de ‘Brexit’ (salida Británica de la EU), lo que sevéramente socava el proyecto más grande de Battistelli el que usaba habituálmente para justificar sus increíbles abusos



  24. [ES] El Caradura Benoît Battistelli Debería Renunciar a Luz de la Filtrada Nueva Decisión en Su Vendeta en Contra de un Juez que se Atrevió a Decir la Verdad (Actualizado)

    Benoît Battistelli continúa quebrando las propias reglas de la EPO, no sólo las leyes naciónales, como una nueva decisión ayuda a revelar



  25. [ES] Cada Vez Más Parece Que Battistelli está Escondiéndo ‘Evidencia’ Falsa y/o Ilegalmente Obtenda de la Unidad Investigativa de la EPO

    El porqué creemos que Benoît Battistelli está cada vez mas desesperado de esconder operaciónes ilícitas de reunir ´evidencia´ lo que eventuálment lo puso a él mismo — no al acusado — en una situación catastrófica situacion que lo puede forzar (esperamos) a us renuncia



  26. Links 28/6/2016: Vista 10 Updategate, OpenMandriva 3.0 Beta 2

    Links for the day



  27. Links 27/6/2016: Linux 4.7 RC 5, OpenMandriva Lx 3.0 Beta 2

    Links for the day



  28. From Alleged Organised Crime to Vice-President of the European Patent Office (EPO)

    Željko Topić's situation in Croatia illuminated by means of recent documents from the authorities



  29. Battistelli May Still be on the Way Out as Pressure Grows in Germany, UPC in Shambles

    Pressure on Battistelli is growing even from within circles that are traditionally protective of him and a long letter is sent to Dr. Christoph Ernst, who some believe will replace Battistelli



  30. Caricature: European Patent Office (EPO) Under Battistelli

    The latest caricature about the state of the European Patent Office (EPO)


CoPilotCo

RSS 64x64RSS Feed: subscribe to the RSS feed for regular updates

Home iconSite Wiki: You can improve this site by helping the extension of the site's content

Home iconSite Home: Background about the site and some key features in the front page

Chat iconIRC Channel: Come and chat with us in real time

CoPilotCo

Recent Posts