ROANOKE TIMES 
                      Copyright (c) 1996, Roanoke Times

DATE: Wednesday, April 10, 1996              TAG: 9604100077
SECTION: BUSINESS                 PAGE: B-6  EDITION: METRO 
DATELINE: SAN FRANCISCO
SOURCE: The New York Times

IBM, APPLE SAID TO BE NEAR DEAL

IBM's chip-making division and Apple Computer Inc. are said to be close to concluding a licensing deal for Apple's Macintosh software operating system.

But while Apple's stock rose Tuesday on news of the talks, industry executives said they did not expect - as many investors apparently did - that the agreement would lead to the manufacture of Macintosh clones by IBM or any other major computer maker.

Instead, executives familiar with the discussions expect IBM's chip-making division, which already produces Power PC chips for Apple's Power Macintosh machines, to offer Apple clone makers a ``one stop'' license for IBM Power PC chips and Macintosh software.

And so, analysts said, a Macintosh licensing deal by the IBM Microelectronics Division would probably fall short of the vision of Gilbert Amelio, Apple's new chairman, to help turn the company around by finding a major manufacturing partner for Macintosh-based machines.

Apple is trying to revamp a business strategy that has left the company with $2 billion in surplus inventory.

Neither Apple nor IBM executives were willing to comment on the talks.

LENGTH: Short :   32 lines