Intel and other U.S. computer makers and distributors were raided by European Commission and local authorities as part of an investigation into possible antitrust violations.
The commission's escalation came as Intel's smaller rival, Advanced Micro Devices (AMD), was trying to ratchet up pressure on the chipmaker, which has 90 percent of world sales of microprocessors for personal computers that run Microsoft Windows and Linux.
Intel (INTC) confirmed the raids and said that it was cooperating fully with the commission. Sources familiar with the situation said that the raids included Intel's installations in Swindon, England, and in Munich, Germany.
AMD has argued to competition authorities around the world, and recently filed lawsuits alleging that Intel maintains a 90 percent market share by income and 78 percent market share by volume, violating antitrust laws.
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Remote keyboard: Microsoft will offer a wireless keyboard designed for computers running the home entertainment version of the Windows operating system, the company said.
The Microsoft Remote Keyboard, which features a mouse and remote-control functions for operating Windows Media Center PCs, is part of a larger effort by Microsoft (MSFT) to expand its flagship operating system into living rooms as entertainment hubs.
The $100 integrated keyboard, which features backlit keys and buttons for operating TVs and the computer, is the first designed specifically for a Media Center PC.
Microsoft also showed off a keyboard designed for editing and organizing digital photographs on a PC bundled with digital image editing software. It also lists for $100.
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New friends: The staff of the Federal Communications Commission has recommended approval of Sprint's $35 billion acquisition of Nextel Communications, according to a source with firsthand knowledge of the deliberations.
The source, speaking on condition of anonymity because the recommendation has not been made public, said staff members looking into the deal have forwarded their findings to the agency's four commissioners.
Sprint-Nextel would be the third-largest wireless provider in the country after Cingular and Verizon.
The merger would give Sprint (FON) access to Nextel's 15.3 million subscribers, many of whom are business customers who are more profitable than Sprint's base of customers. In all, the new company would have 35 million wireless subscribers and a combined $40 billion in annual revenue.
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Big money in drugs: Shares of Genentech rose a day after the biotechnology company reported its second-quarter profit surged 73 percent, fueled by continued strong drug sales.
This quarter, the company earned $300 million, or 27 cents per share, up from the previous year's $170 million, or 16 cents a share.
The company is now grappling with how to maintain its scientific culture and how to increase its research and development efforts during the company's rapid growth. Earlier this year, Genentech (DNA) surpassed Amgen as the most valuable biotechnology company, as measured by market capitalization.
Profit surged behind sales of one of Genentech's newest cancer-fighting drugs, Avastin. Avastin sales in the United States increased 85 percent to $245 million for the latest quarter, compared to $133 million for the same period last year.
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Compiled by David Cohn. AP and Reuters contributed to this report.
