Saturday, July 26, 2008
Friday, July 25, 2008
Nokia shares rise more than 2 pct on Qualcomm deal
Shares of Nokia Corp., the world's biggest cell phone maker, rose
more than 2 percent Thursday as the company's truce with chip maker
Qualcomm Inc. alleviated fears that their long-running licensing battle
would disrupt the mobile industry.
The companies had been
feuding over royalties that Qualcomm charged -- and Nokia claimed were
too high -- on Qualcomm-patented technologies widely used in cell
phones to regulate the way information is transmitted. The dispute
lasted nearly three years and spanned three continents, spilling over
into courtrooms in the U.S. and abroad over Nokia's allegations of
antitrust violations.
U.S. traded shares of Espoo,
Finland-based Nokia gained 59 cents, or 2.2 percent, to $27.29
Thursday, a day after Nokia and San Diego-based Qualcomm announced a
15-year licensing deal that extinguishes the pending litigation between
the companies and gives Nokia rights to an array of Qualcomm patents.
Nokia
agreed to fork over an undisclosed sum to Qualcomm and pay ongoing
royalties, a boon for Qualcomm that the company estimates will lead to
a gain of 7 cents to 13 cents per share in the fiscal year ending in
September.
Qualcomm's stock was a big winner in the deal,
jumping $7.61, or 17 percent, to $52.43 Thursday, and hit a new
year-high of $54.51.
Qualcomm is the world's largest maker of chips that run cell phones.
From : http://www.businessweek.com/