* MICROSOFT BAILS OUT COREL WITH $135 MILLION STOCK PURCHASE
In a move reminiscent of its 1997 $150 million Apple bailout, Microsoft
surprised the high-tech world late yesterday by announcing a similar
deal with besieged Corel, which has been floundering lately on the edge
of bankruptcy. Under terms of a new strategic alliance between the two
companies, Microsoft has purchased $135 million worth of Corel stock.
In return, Corel will work with Microsoft to develop the .NET
initiative and participate in trade shows, product launches, and other
events. Corel recently moved into Microsoft territory by offering a
rival OS based on Linux, and the company also ported its WordPerfect
Office suite and CorelDRAW products to Linux. But an attempt earlier in
the year to become a "Linux powerhouse" failed, and Corel has fallen on
hard times. Corel maintains, however, that the Microsoft alliance won't
affect its Linux products