Qualcomm Spinco IPO off

April 25, 2001: 6:18 p.m. ET

Qualcomm officially calls off Spinco IPO; will spin off unit by fall this year

NEW YORK (CNNfn) - Qualcomm Inc. still plans to spin off its Spinco semiconductor business but announced Wednesday that it will not pursue an initial public offering for the unit.

San Diego-based Qualcomm (QCOM: up $3.48 to $62.98, Research, Estimates) plans to split off Spinco by fall of this year in the form of a 100 percent tax free distribution to shareholders. However, the company has ample cash and is choosing not to launch an IPO of the Spinco unit, Qualcomm said in a statement.

Qualcomm has yet to file its intent to formally withdraw the IPO with the Securities and Exchange Commission.

Qualcomm, citing poor market conditions, announced in November it was pushing the offering until January. News of the decision was included as part of Qualcomm's second-quarter results.

Last July, Qualcomm Spinco filed to raise $100 million via an initial public offering of stock co-led by Lehman Brothers and Goldman Sachs. The IPO was expected to come to market late last year.

Qualcomm Spinco designs chips and software for wireless telephone and network equipment based on the wireless technology known as Code Division Multiple Access.