Qualcomm Responds To JANA's Ideas

(RTTNews) - Responding to ideas presented by activist hedge fund JANA Partners LLC, Qualcomm Inc. (QCOM) said Monday that it is firmly committed to maintaining an active dialogue with all shareholders and to acting in their best interests.

Earlier Monday, the Wall street Journal reported that JANA Partners has urged Qualcomm to consider a breakup and other options to boost the giant chip maker's sagging stock price.

The Journal said that JANA has asked Qualcomm to consider spinning off its chip unit from its patent-licensing business.

According to the report, Jana—which has purchased a stake of more than $2 billion, making it one of Qualcomm's largest shareholders—also called on the company to cut costs, accelerate stock buybacks and make changes to its executive-pay structure, financial reporting and board of directors.

"Our Board of Directors and management periodically review our corporate structure. Prior reviews have concluded that the synergies provided by our business model create more value for stockholders than could be created through alternative corporate structures," said Qualcomm.

"We will continue to evaluate opportunities to enhance stockholder value and are committed to pursuing the right course of action for all of our stockholders," Qualcomm added.