One of Palm Inc.’s biggest investors has told CNBC that he expects this company will be acquired by Motorola.
Motorola is one of several companies that, according to unconfirmed reports, are bidding on the handheld and smartphone maker.
CNBC‘s source, who asked to remain anonymous, confirmed many of the details of this process, including that Morgan Stanley is helping Palm handle this auction, and that it is between Motorola, Nokia, and two private equity funds.
Palm could reveal that it is being acquired as early as today, when it announces the results of its most recent financial quarter.
Or Maybe Not
Motorola released its own quarterly financial statement yesterday and the results weren’t good. The company posted a loss because of declining sales. It went on to predict that it is going to fall short of its predictions for its full financial year in revenue and profits.
This has caused some to question whether Motorola would be interested in buying Palm at this time.
After a sharp rise in its share price fuel by speculation of a buyout, Palm’s stock fell $1.02 in pre-market trading today.