Qualcomm takes a piece of Pantech
Korea's Pantech has always played second fiddle (well, third fiddle, we suppose) to global giants Samsung and LG, but somehow, the little guy has managed to be cash flow positive for the past eight quarters of financial results since undertaking a corporate restructuring. To further strengthen its position, it's in the process of swapping some outstanding debt for equity -- and one of those creditors just happens to be Qualcomm, which has a booming Korean business and enjoys tight relationships with many of the local players. This sounds like it won't really have any material effect on Pantech's day-to-day operations, since Qualcomm says it wants to stay passive and won't move to install any management or board members; that being said, it could end up with as much as 15 percent of Pantech's common stock, which is a nice little chunk. We're guessing this means we won't be seeing many Pantechs with Broadcom basebands, eh?
[Via Unwired View]
