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Technology Stocks : The New Qualcomm - a S&P500 company -- Ignore unavailable to you. Want to Upgrade?

To: Ruffian who wrote (12952)	6/23/2000 9:47:00 AM
From: Eric L	Respond to of 13582

*Analysts say Qualcomm takevoer unlikely as stock soars* June 22, 2000 04:51 PM LOS ANGELES, Reuters Shares of Qualcomm Inc. QCOM jumped in heavy trading on Thursday on revived speculation that the wireless communications technology company could be a takeover target for Finnish mobile phone giant Nokia Corp. NOK , but analysts downplayed the rumours. Qualcomm stock ended 3-3/4 higher at 68-1/4 on Nasdaq after earlier rising as high as 73-7/8. Qualcomm was the second most active stock on Nasdaq, with more than 42 million shares changing hands. Nokia's shares fell 4/15 to 55-13/16 on the New York Stock Exchange, and was the third most traded stock, on volume of 19 million shares. Analysts generally downplayed the speculation. "I would find it surprising, not because Qualcomm is not attractive, but given the attractiveness of its business model and free cash flow, it could set off a fierce bidding war if put into play," First Union Securities analyst Mark Roberts said. Given that the stock traded as high as $200 earlier this year, analysts noted that San Diego-based Qualcomm would likely command a steep premium. Others noted that Nokia did not seem to be a fitting acquirer. "I haven't heard of Qualcomm being a takeover target," Deutsche Banc Alex. Brown analyst Brian Modoff said. "But anything can get taken over by a big company. It would make more sense if it were another large chipmaker, such as Texas Instruments or Intel." He said that a takeover by Nokia could jeopardise Qualcomm's customer base, 50 percent of which are handset vendors that directly compete with Nokia. Qualcomm shares have been volatile in recent weeks after China Unicom, No. 2 state telecom carrier, scrapped immediate plans to deploy the company's CDMA technology that is at the base of a new generation of wireless communications. << - Eric -