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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: Jim Mullens who wrote (53128)	7/4/2006 10:21:54 AM
From: hedgefund	Read Replies (1) \| Respond to of 197016

Jim, isn't there a kink in the link of logic that Qualcomm could always split off QCT from QCL and then charge higher premiums. Wouldn't the split off QCT be more likely a target for a takeover. Last time I looked the market cap for Qualcomm was $66 Billion. QCT provided about 42% of earnings before taxes to Qualcomm's fiscal 05 results. That tells me that control of a spun-off QCT wouldn't cost more than $17 billion, not a big ticket item these days. While it is true that Nokia et al would be paying higher premiums, a spin off would result in the loss of synergies that Paul Jacobs refers to, the synergy that fuels the reasonably high PE ratio that Qualcomm enjoys...Is a spin-off threat a scorched earth policy?