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To: waitwatchwander who wrote (112040)	5/24/2012 3:03:46 PM
From: waitwatchwander	4 Recommendations of 117477

The deal, as reported, just doesn't make any sense. What else is new! We had 74% of the entity before the deal and now have 51%. It appears that we received no cash from the deal but must have gotten something for the noted dilution. Does $85M in extra equity funding account for our 23% reduction in equity value? That means we got no credit for putting up the funds for Tulip's deficiency and might well have to deal with that matter as a separate affair. It might well be that Bharti has committed to more fully fund the infrastructure build out but that's certainly not clear. It sure would be nice if Qualcomm could be a bit more transparent with the millions of dollars they slosh about.

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To: JeffreyHF who wrote (112045)	5/25/2012 8:17:34 AM
From: waitwatchwander	of 117477

---> according to S&P I heard about the assumption of debt but not any extra cash payment. An amount of $900M would be about right for the cost of infrastuture. Is it possible that S&P is just speculating on that now being a Bharti responsibility? That would make sense. Establishing a 2014 takeout price now for Qualcomm's 51% seems a bit preemptive, although meeting conditions as to finally taking Qualcomm out was noted in Qualcomm's PR. I'm surprised S&P has these extra details. [Edit] I see from Google S&P was speculating on the takeout price. Who pays for infrastructure costs is still up in the air. economictimes.indiatimes.com

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