2005-03-11
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.
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.
# posted by Don-n-ABQ @ 5:22 PM 
