Palm Inc. Seeks Bids as Early as This Week Amidst Speculation of Takeover

Strategic Insights -

Palm Inc., the creator of the Pre smartphone, is reportedly seeking bids for the company, according to Bloomberg News. The news has sent Palm's shares soaring, jumping as much as 9.4% in Europe, as investors speculate about potential buyers. Palm, which pioneered the market for personal digital assistants, is working with Goldman Sachs Group Inc. and Frank Quattrone's Qatalyst Partners to find a buyer, and both Taiwan's HTC Corp. and China's Lenovo Group Ltd. have expressed interest. The sale could end the volatility of an investment in Palm for Elevation Partners LP, which owns about 30% of the company.

Key Takeaways:

  • Palm Inc. is seeking bids for the company as early as this week, with Goldman Sachs Group Inc. and Frank Quattrone's Qatalyst Partners working to find a buyer.
  • Taiwan's HTC Corp. and China's Lenovo Group Ltd. have looked at the company and may make offers.
  • Palm shares jumped as much as 9.4% in Europe following the report, driven by speculation about potential buyers.
  • The company's sale could end the volatility of an investment in Palm for Elevation Partners LP, which owns about 30% of the company.
  • Palm, which helped pioneer the market for personal digital assistants, will offer suitors the WebOS software that competes against mobile operating systems from iPhone maker Apple Inc. and Google Inc.
  • Dell Inc. looked at Palm, though it decided against an offer, according to two people familiar with the matter.
  • Nokia Oyj, the Finnish company, has declined to comment on whether it might be interested in buying Palm.

Statistics:

  • Palm shares jumped as much as 9.4% in Europe.
  • Palm shares surged 32% last week on renewed speculation of a takeover bid.
  • Palm shares have been buoyed in the past on speculation the company would be bought by Nokia Oyj.
  • Palm's shares have plunged more than 60% this year, dragged down by disappointing sales of the Pre and Pixi phones.

Sources:

  • Bloomberg News
  • Goldman Sachs Group Inc.
  • Frank Quattrone's Qatalyst Partners
  • HTC Corp.
  • Lenovo Group Ltd.
  • Elevation Partners LP
  • Dell Inc.
  • Nokia Oyj
  • EUclid Infotech
  • Contify.com