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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting

QCOM 159.42

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Jan 16 9:30 AM EST

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To: carranza2 who wrote (76869)	5/4/2008 11:25:45 AM
From: Stock Farmer	Read Replies (1) of 197260

Since Nokia is IMO happy to simply delay the day of reckoning, the dynamics do not point to settlement. IMO, aside from interest, Nokia doesn't have much to lose. If they lose, they'll end up paying what Qualcomm wants, plus interest. Qualcomm's made such a fuss about their pricing structure being fair it would be hard to argue differently. So a complete loss is status quo, plus or minus some legal bills - noise in the grand scheme of things. They also know that the imputed interest a court might award is less than their WACC (weighted average cost of capital), so the CFO's office has got to see delaying payment as more capital efficient than any sort of pay-as-you-go structure. Their self-interest is served by hunkering down and forcing Qualcomm to win every point. It's not like any moral principle compels Nokia to agree with Qualcomm any more than Qualcomm is compelled to agree with Broadcom. I suspect a settlement will come when one or the other party decides that the risk-weighted cost of continued holding out is greater than the risk-weighted expected gains.

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