Infrastructure Sale Update. $121 Million Price Tag
the nonrecurring loss on the sale, may be larger than expected. Of course, NONRECURRING, and rids the Q of a money losing operation, gets margins up, and permits focus on CDMA.
STOCKHOLM, April 15 (Reuters) - Swedish telecoms equipment maker Ericssonmay have paid a bit less than one billion crowns ($121 million) for Qualcomm's terrestial CDMA wireless infrastructure business, a Swedish daily said on Thursday.
''When all's calculated, the price tag... falls slightly below one billion crowns,'' the daily Svenska Dagbladet said.
Ericsson and Qualcomm (Nasdaq:QCOM - news) of the United States also settled a patent row at the same time last month, paving the way for a global wireless standard and boosting Ericsson's position in the U.S. market.
Analysts have speculated that Ericsson paid between three and eight billion crowns for Qualcomm's wireless infrastructure business, including two of its research and development facilities.
''The speculations about the price from analysts and the press have been completely wrong and indicate a significantly higher price tag than what we have paid, in some cases several times exaggerated,'' Ericsson spokeswoman Pia Gideon said.
CDMA (Code Division Multiple Access) is a telephone standard developed by Qualcomm and mainly used in the United States.
($1=8.2641 Swedish Crown)
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