Microsoft co-founder slams Bill Gates

THE CO-FOUNDER of Microsoft, Paul Allen has accused chairman Bill Gates of attempting to con him out of shares in the company.

The allegations are made in a book of memoirs by Allen entitled Idea Man, which is set to be published in April by Portfolio.

Allen said that he overheard a conversation between Gates and Steve Ballmer, Microsoft's current CEO, in December 1982, not long after Allen revealed that he was considering leaving the company. He said that they were complaining about his work and plotting ways to dilute his equity.

The original shares of the company were 36 per cent for Allen and 64 per cent for Gates, the larger chunk of the pie being for a higher contribution by Gates to the coding for the Altair computer, but these shares were later diluted. Allen revealed that he did not want Ballmer to join Microsoft, but later agreed that he could have a five per cent share, only to find that behind his back Gates gave him an 8.75 per cent share instead.

Allen said that just before he left Microsoft in 1983 Gates tried to buy him out for a paltry offer of $5 per share, but Allen wanted at least double that. Allen said that Gates complained that he shouldn't get to keep his shares if he was leaving the company.

Allen revealed that Gates and Ballmer apologised for the dilution incident some time later, but chances are that there will be sour feelings between all three now that this account has come to light. Gates said that his recollection of events is different than Allen's, but that he values his friendship, according to Reuters. µ