Qualcomm Inc (QCOM)

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Qualcomm Lawyer Says Offer to Broadcom Is Unchanged (Update1)

By Peter J. Brennan

http://www.bloomberg.com/apps/news?pid=conewsstory&refer=conews&tkr=QCOM:US&sid=a1NkgvQj....

Sept. 28 (Bloomberg) -- Qualcomm Inc., the world's second largest maker of cellular phone chips, is offering rival Broadcom Corp. the same licensing deal the company put forward when the two began negotiating last year, its lawyer said.

Qualcomm Chief Executive Officer Paul Jacobs said in an interview yesterday that his company is offering Broadcom an ``extremely favorable'' deal. That applies to the offer Qualcomm had made in initial negotiations, Bill Sailer, legal counsel for the San Diego-based company, said in an interview.

Broadcom, which makes chips for cable-television boxes, and Qualcomm have 10 patent lawsuits between them. A U.S. judge ordered them to take their dispute to a mediator Oct. 4. Broadcom has said Qualcomm's refusal to negotiate better license terms is blocking it from selling the latest cell-phone chips, which can browse the Web. Qualcomm accused Broadcom of theft.

Jacobs' remarks yesterday suggest an agreement between the two companies ``is likely'' on Oct. 4, JPMorgan analyst Ehud Gelblum wrote in a note to investors today. A deal favorable to Broadcom implies Qualcomm's ``legal armor could be pierced,'' he said.

Qualcomm shares dropped $1.11, or 2.9 percent, to $37.02 at 4 p.m. New York time in Nasdaq Stock Market composite trading. Shares of Irvine, California-based Broadcom rose $1.09, or 3.7 percent, to $30.84.

To contact the reporters on this story: Peter J. Brennan in Los Angeles at [e-mail] .