Qualcomm or Motorola buying Lucent

A recent BusinessWeek article, 11-Feb-2005 - by Steven Rosenbush, cites a report from Merrill Lynch Telecom analyst Tal Liani:

Regarding Lucent (LU):

"...analyzing what a combination of Lucent and wireless equipment maker Motorola (MOT) would look like."
"Wireless technology giant Qualcomm (QCOM), which has a market cap of $60 billion, also has the financial wherewithal to make a deal work."

Qualcomm buying Lucent makes no sense at all to me, and while Motorola might make a little more, it's not much.

Why would a company dilute their faster growing-higher margin business by buying a slower growing-lower margin business?

If Qualcomm or Motorola wanted to buy another company it would be newer cutting-edge technology. The same goes for Lucent. Lucent would be better off continuing to clean up their balance sheet, then increase R&D, and purchase they best new technology that they need.

I don't see it. Liani is trying to make the stock go up.

* DISCLOSURE: I don't not own shares of MOT or QCOM. I do own LU.
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