(Associated Press via NewsEdge) Speculation of a buyout of Palm heightened after an industry online publication reported a deal could occur this week.
The maker of Treo smart phones and handheld computers hired investment banker Morgan Stanley a few weeks ago to explore its strategic options, including a possible sale, according to a person familiar with the situation.
Now, according to Unstrung.com, Morgan Stanley wants to close a deal by the time Palm releases its fiscal third-quarter results this week.
Citing unnamed sources, the business news Web site focusing on the wireless communications industry said the potential buyers included cell phone makers Nokia and Motorola, and private equity firms Texas Pacific Group and Silver Lake Partners.
Representatives of Morgan Stanley, Motorola, Texas Pacific Group and Silver Lake Partners all declined to comment on the report. Nokia did not immediately return a phone call seeking comment.
Marlene Somsak, a spokeswoman for Palm, also would not comment on the report except to reiterate that the company 'is focused on growing its business.'
Nokia, the world's largest handset provider, is a leading candidate to buy Palm, pondering a bid of $19 per share to $20 per share, but Motorola, the No. 2 handset maker, may try to outbid its Finnish rival, Unstrung.com reported.
Palm's management, however, is leaning toward selling to a private equity investor, the site said.
With $1.58 billion in sales in its fiscal 2006, Palm has seen its shares surge more than 33% this year amid the takeover speculation. The handheld computing pioneer has a loyal customer base and is profitable but faces a growing list of powerful rivals, which will soon include Apple.
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