After The Wall Street Journal published a report on Friday purporting that Qualcomm (QCOM) has approached Intel (INTC) regarding a potential acquisition, Benchmark understands Qualcomm’s attraction to the possibility of a combination with at least a portion of Intel, namely its chip design business focused on the PC/notebook and server markets, but believes Qualcomm’s “ultimate acquisition of Intel is logically unlikely.” An Intel offer would “undoubtedly entail a hefty price tag,” which the firm believes would need to offer Intel’s shareholders at least a 40%-50% premium to its current trading price to be taken seriously by the company’s board, or a stock price of about $30-$32, but “even greater than the steep financial hurdle, we believe the largest impediment to an acquisition is simply the high degree of regulatory scrutiny the transaction would attract,” Benchmark tells investors. The firm, which is not convinced that Qualcomm will make a firm bid for Intel, reiterates a Hold rating on Intel’s shares and a Buy rating on Qualcomm with a $240 price target.