Palm Stock Up on Acquisition Rumors

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Palm Inc.’s stock price jumped up over 4 percent yesterday after an analyst indicated that he thinks this company might be up for sale.

On Wednesday morning, Jonathan Hoopes, an analyst at ThinkEquity, said that Motorola’s plan to purchase another mobile device maker, Symbol Technologies, “just increased the likelihood that either Motorola or another major handset vendor will see value in Palm and move to acquire the company.”

According to Hoopes, Motorola might want Palm as part of its campaign to compete with RIM, the maker of the very popular line of BlackBerry handhelds and smartphones.

Does This Make Sense?

Rumors that Palm is going to be bought out surface a couple of times every year, but these never turn out to be based on facts.

That isn’t to say Motorola might not be interested in Palm. When PalmSource put itself up for sale last year, one of the companies that submitted bids was Motorola.

And there’s at least one major shareholder who would probably listen if Motorola wanted to open negotiations. Mark Nelson, who owns about about 8 percent of Palm’s stock, has publicly urged the board of directors to sell Palm to a larger company in the past.

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Via Tech Trader Daily

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