“The French government approached Intel about entering into a JV with a domestic company,” writes Davidow, “most of Intel management was dead-set against the proposals, but Bob Noyce and I were for it.”
“I made an extremely simple case,” adds Davidow, “it was that there had to be a price at which Intel might want to deal. We all then agreed that $10 million was the right number. I realised later that the figure was acceptable to the other Intel executives because they were all convinced we would never get it.”
“The strategy we pursued was fairly direct,” continues Davidow, “we asked for $25 million, thinking we would then retreat down to an acceptable level. Instead, remarkably, they accepted.”
“”Then the French changed the corporate partner to someone I felt would not be acceptable to Intel,” adds Davidow, “in order to stall for time, I raised the price to $50 million. To our amazement, the French agreed to the new price. The deal was approved by the prime minister.”
“The French were happy. I was happy. But Intel was increasingly dismayed as it learned more about the new partner. Ultimately the company decided to kill the deal,” concludes Davidow.
