Art, as you remarked, there is a LOT of debt in the telecosm. Assets are being repriced to very tempting levels. Companies with a mountain of cash, such as QUALCOMM, and a river of money pouring in, such as QUALCOMM, will be able to go shopping in a big way.
QUALCOMM could borrow a few billion of Alan Green$pan's newly printed liquidity and low interest rates, combine that with some QUALCOMM shares and go shopping for some really good assets to synchronize with their CDMA promotion.
For example, they could buy a chunk of distressed NextWave, which seems to have a very valuable asset in spectrum rights. Well, they've done that one. Globalstar is on the auction block. QUALCOMM will be able to buy that for pennies on the dollar and it is totally synchronicitous with QUALCOMM's business. How about some fibre to add to the Globalstar network for a single global system. Why, Global Crossing seems to be in a spot of bother and perhaps will be available to somebody with cash. Heck, QUALCOMM won't even have got through the existing stack of cash with those buys. With more flooding in every day.
No doubt there will be plenty of opportunities coming up for a cash and shares deal when creditors or desperate companies are looking for support.
QUALCOMM could borrow a few billion from Uncle Green$pan with no upset to the balance sheet if there are some more bargains. Or they could issue more shares too.
This is a reprise, writ large, of Korea 1998 when QUALCOMM used their cash to go shopping for desolate Korean telecosm companies. Mighty Q! will be able to have a LOT of fun.
Mqurice |
