Some Reality Setting in at Palm (PALM)

Posted in pre-market 
April 13th, 2010

Palm Inc. (NASDAQ: PALM) has reportedly sought out Huawei as a prospective buyer, but there may be one hang up.  The company may be too expensive to acquire now if you factor in the preferred shares and options held by Elevation and private equity investors.  Dow Jones valued that at $1.5 billion if a $6.50 buyout price were there and shares are already up 60% on hopes that HTC, Lenovo or another buyer was about to surface.

Shares are down 4.3% at $5.78 on almost 500,000 shares as of 8:15 AM EST.


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