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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?


To: waitwatchwander who wrote (12350)7/14/1998 11:36:00 AM
From: Houston_CPA  Read Replies (1) | Respond to of 152472
 
SpinCo -- the bigger, the better

Northforce,

It is agreed that the bride needs a good endowment of properties
and stakeholders. A plausible scenario would be for the SpinCo
to become an unconsolidated subsidiary of ATI with Mr. White as
the CEO. Mr. White would be a natural for the assignment since he
put together the portfolio in the first place. This way QCOM holders
would get (minority interest) shares in a much more attractive
deal. Do you think that Nortel would want to buy into a larger
SpinCo?

As you can tell, I'm a fan of AirTouch (although not presently a
shareholder). I really like how they highlight their strategic investment in Qualcomm and praise CDMA in their annual report. Besides their investments and alliances with Qualcomm, they do a great job of convincing Wall Street of their method of proportional accounting for POPs. This is important to SpinCo since this method will be its method of accounting (otherwise pooling deals would not make sense).