CHICAGO (Reuters) - Qualcomm Inc. withdrew its offer to become a lead investor in a restructuring plan to save troubled satellite telephone company Globalstar L.P., leaving Globalstar scrambling for another plan, sources close to the situation told Reuters yesterday.

The sources also told Reuters that TE.SA.M, which provides 40 percent of Globalstar's business in terms of airtime spent, is trying to exit the business and has frozen all spending related to Globalstar except salaries and office rent.

The two decisions come at a difficult time for Globalstar, which has previously warned that it may seek bankruptcy protection if it cannot restructure. Globalstar will now have to devise an alternative restructuring plan under greater time pressure.

Qualcomm declined to comment.

Globalstar spokesman Mac Jeffery told Reuters: "Qualcomm remains a partner of Globalstar. They also remain a supplier of technology to Globalstar. They continue to work with us and all the partners on a restructuring plan."

Bermuda-registered Globalstar is the third satellite telephone company to encounter problems along with Iridium, the pioneer of satellite-based telephone services, and ICO Global.

Satellite telephone businesses have had problems with high operating costs and lower-than-expected demand due to the quick spread and plunging cost of ground-based wireless services.

Bulky satellite phones costing up to $3,000 cannot easily compete with smaller, cheaper cell phones.

Shares of Qualcomm closed up $6 at $63.87, a rise of 10.37 percent, on the Nasdaq. Shares of Globalstar Telecommunications Ltd. , the publicly traded partner of Globalstar, closed off 2 cents at 32 cents, a drop of 5.88 percent, on the Nasdaq. Globalstar's stock has underperformed the Nasdaq telecommunications index by more than 88 percent over the past year.

Wireless technology firm Qualcomm, one of Globalstar's founders, had been considering buying the satellite firm's assets as part of a restructuring plan discussed by Blackstone Group, Globalstar's strategic advisor.

Under the plan, which was introduced at a May 3 meeting of Globalstar partners, Qualcomm and some other unnamed investors would have stepped in with cash to keep Globalstar afloat if the company agreed to file for Chapter 11 bankruptcy protection.

Qualcomm would have been the lead investor and Globalstar would have reportedly received up to $500 million from the deal.

However, sources said Qualcomm's due diligence team determined that the potential costs were too high after about five weeks of investigation.

"They basically said this is going to be a lot more expensive than we really thought, and because of that, we're pulling this deal off of the table," one source said.

Another source said Qualcomm might still be open to participating in a restructuring plan in which it would play a lesser role.

Globalstar L.P. is a partnership formed in 1994 by satellite firm Loral Space & Communications Ltd. and Qualcomm. Loral owns about 38 percent of Globalstar L.P.

Globalstar Telecommunications Ltd., the public Globalstar entity, owns more than 40 percent of the business. Qualcomm and several other companies own the remainder.

At the end of 2000, the company had only $197 million in cash. In May, it reported a first-quarter net loss applicable to ordinary partnership interests of $145 million compared with a loss of $216 million a year ago.

To add to Globalstar's woes, it is also losing the support of TE.SA.M, its service provider in Western Europe, North Africa and South America.

TE.SA.M, a partnership between France Telecom and Alcatel , was not immediately available for comment.

However, one industry source noted, "When a player like TE.SA.M takes that position, it will have a severe effect on Globalstar's business."

Globalstar's Jeffery reiterated that TE.SA.M remained a partner of Globalstar.

Separately, Qualcomm and Finnish cell phone giant Nokia said Tuesday they expanded the terms of a 1992 cross-licensing agreement to include CDMA wireless infrastructure technology.

The agreement, which previously included only CDMA cell phone technology, has undergone a multimillion-dollar expansion, the companies said.