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Qualcomm Says It Gave Broadcom a Good Offer

September 28, 2006|From Bloomberg News

Cellphone chip maker Qualcomm Inc. said Wednesday that it had offered rival Broadcom Corp. an "extremely favorable" deal to make semiconductors for the newest handsets and settle outstanding legal disputes.

"We're willing to have, I think, a settlement that's extremely favorable to them, and I'm hopeful that we'll get to that point," Chief Executive Paul Jacobs said. "We've been making very earnest offers to them."

A U.S. judge has ordered Qualcomm Chairman Irwin Jacobs and Broadcom Chairman Henry Samueli to take their differences to a mediator in San Diego on Oct. 4 as a way to resolve legal issues between the companies. Broadcom says Qualcomm is blocking it from the market for chips used in the newest handsets that can browse the Internet. Qualcomm has accused Broadcom of theft.

"We felt like the conversations that have been happening previously between the chairmen were productive and then maybe when it got down in the ranks, things sort of got off-track," said Paul Jacobs, who is Irwin Jacobs' son.

Shares of San Diego-based Qualcomm dropped 30 cents to $38.13. Shares of Irvine-based Broadcom fell 11 cents to $29.75.

A Broadcom spokesman was unavailable for comment.

Broadcom wants the U.S. International Trade Commission to stop imports of handsets with Qualcomm's newest chipsets. Administrative Law Judge Charles Bullock is scheduled to rule on the issue Oct. 10.

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