http://news2.thls.bbc.co.uk/hi/english/business/newsid%5F774000/774063.stm

Friday, 2 June, 2000, 04:14 GMT 05:14 UK

Canada woos Microsoft

          British Columbia: A new home for Microsoft?
          By David Willis in Seattle

          As the US software giant Microsoft waits
          to hear whether an American judge will
          order its break-up, it has been revealed
          that the company is being encouraged to
          relocate its operations to neighbouring
          Canada.

          The authorities in British Columbia have
          offered to do a deal with Microsoft.

                    They are promising
                    favourable treatment
                    which may include a loan
                    to build a new
                    headquarters if Microsoft
          agrees to move its operations 100 miles
          further north, to the other side of the
          Canadian border.

          Microsoft currently has around 20,000
          employees in Seattle. Transferring its
          headquarters could have a devastating
          effect on the economy of the north-west
          corner of the United States.

          But it would also frustrate the American
          authorities' attempts to break the
          company up.

          'Welcome asset'

          The Canadians see Microsoft's current
          battle with the US government as an
          opportunity to attract one of the world's
          most valuable companies.

          In a statement released to the BBC, the
          man in charge of attracting investment to
          British Columbia, Gordon Wilson, said
          Microsoft would be what he called "a
          welcome asset".

          It is rumoured his officials may have
          engaged in secret discussions with
          Microsoft. But the company itself denies
          this, saying it is focusing on fighting any
          plans for a break-up through the courts.

          The judge, hearing a long running
          anti-monopoly case against Microsoft, is
          expected to announced his conclusions
          within the next few weeks.

          It would be unlike a company as
          far-sighted as Microsoft not to have
          considered all its options and, clearly, its
          ultimate option if the operating
          environment becomes too hostile in the
          United States, is to move overseas. In
          fact, that could turn out to be the
          company's trump card.

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