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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 174.25-1.1%12:17 PM EST

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To: slacker711 who wrote (54886)9/1/2006 7:30:45 AM
From: hedgefund  Read Replies (1) of 196977
 
This may simply be a public relations "face-saver" or a sign of desperation. The best chance Broadcom had was their anti-trust claims. Fraud and breach of contract seem a bit attenuated given the number of licenses Qualcomm has issued. If Qualcomm refused to offer Broadcom a deal, Broadcom might have had some basis for common law complaints, such as a third party beneficiary contract action, i.e, that Qualcomm's FRAND promises to the standard setting body was a promise made for the benefit of others such as Broadcom. But since that is not the case, I wouldn't invest in Broadcom based on any hope that it could prevail on its common law claims. Broadcom was hoping to survive the motion to dismiss in order to force Qualcomm into making a better deal. It may well be that Broadcom understood it could never win on the merits but that if it could survive the motion to dismiss, it would gain bargaining leverage....I think this gambit failed.
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