Q* news--CNET:>>>QCOM Shares Rise on Speculation Nokia Could Buy Company
6/22/00 1:06:00 PM
Source: Bloomberg News
cnetinvestor.com
San Diego, June 22 (Bloomberg) -- Shares of Qualcomm Inc., which developed mobile-phone technology used by 57 million people, rose 5.8 percent amid speculation that No. 1 cell-phone maker Nokia Oyj may buy all or part of the company.
Qualcomm rose 3 3/4 to 68 1/4 in trading of 42 million shares, making it the second-most active U.S. stock. The stock, last year's best performer in the Standard & Poor's 500 Index, has dropped 61 percent this year. Nokia's American depositary receipts, each representing one share, fell 5 1/16 to 55 15/16.
Several Internet sites reported that Nokia is considering buying all or part of San Diego-based Qualcomm. Analysts dismissed the reports as unlikely.
''It's bunk,'' Deutsche Banc Alex. Brown analyst Brian Modoff said of the speculation. Qualcomm's main business is making cell- phone semiconductors, and rival phone makers wouldn't want to buy chips from Nokia, said Modoff. He rates Qualcomm a ''strong buy'' and Nokia a ''buy.''
Nokia licenses Qualcomm's code division multiple access wireless technology, yet doesn't buy Qualcomm chips and has had little success building its own CDMA phones, analysts say. Qualcomm executives have said they hope Nokia will buy Qualcomm chips.
The company has seen its main success in phones that run on the GSM standard that's dominant in Europe and the TDMA standard used by AT&T Corp.'s wireless customers in the U.S.
When asked if Espoo, Finland-based Nokia could buy Qualcomm or its chipmaking business, or if Nokia might order semiconductors from the company, Qualcomm spokeswoman Diana Baldwin said, ''We haven't announced anything.''
Nokia spokeswoman Megan Matthews said the company doesn't comment on rumors.<<< |
