Microsoft Corp, whose shares took a beating on speculation that it would have to bring the inflated European prices of its software down closer to US prices, says it is studying Lotus Development Corp’s plans to lower the suggested retail prices of its software products in Europe, but it has no immediate plans to cut its own prices; its shares tumbled $6.50 to $88.50 in heavy trading on Monday after the gossip got around, but they were recovering yesterday; meantine Lotus was saying that its price cuts, due to take effect on January 1, are down to exchange rate changes and a change in channel discounts, which will be standardised; it said that the pricing moves are aimed at trying to build demand and not to reduce margins.
