& cplSiteName &

Palm Deal in the Final Stretch

Dan Jones
LR Mobile News Analysis
Dan Jones, Mobile Editor
3/19/2007
50%
50%

A Palm Inc. buyout could be finalized by Thursday this week, demanding $20 or more per share, according to sources close to the situation. Nokia Corp. (NYSE: NOK) is seen as the leading vendor bidder; while Palm's management is said to prefer a private equity buyer.

Morgan Stanley -- the banker that the PDA pioneer has been working with to explore its options -- wants to wrap a deal by the 22nd, the day that Palm is due to report its third quarter results for its 2007 fiscal year, according to the latest word from sources.

"They really want to get it closed on the 22nd," a source told Unstrung on Monday morning.

There are up to four buyers on the hook in all -- two private equity firms and two rival gadget vendors. TPG Inc. is said to be one of the interested private equity firms and it is speculated -- but not certain -- that Silver Lake Partners is the other. (See Palm's in Play .)

As Unstrung has already reported, Nokia Corp. (NYSE: NOK) is the key bidder in the vendor world. The number one handset vendor is said to be considering a bid at $19 to $20 a share. (See Palm Action Heats Up .)

What may surprise some, however, is the talk that Motorola Inc. (NYSE: MOT) has been reconsidering its position and may try to block Nokia with a bid.

Here's why, according to one insider familiar with the thinking: Ron Garriques, the former Motorola Executive VP of the handset business who had been opposed to the deal, left Motorola and is now at Dell Inc. (Nasdaq: DELL). Motorola CEO and Chairman Ed Zander is currently running the day-to-day of Motorola's handset business.

Zander has said that Motorola needs to get out of its low-end price war with Nokia and others and introduce more successful mid-tier and high-end models. "The Treo 680 is doing well, and it is exactly the sort of 'feature-rich phone' that Zander said the company needs to develop to get back some pricing leverage," the source says. (See Palm: The Device Angle.)

The thinking is that a deal for Palm would also help Motorola quiet down billionaire share-holder Carl Icahn, who is trying to grab a seat on Motorola's board. In buying Palm, Motorola could demonstrate that it's not just sitting on its cash, but using it strategically. (See Icahn Buys Moto Shares and The Wrath of Icahn.)

A Motorola buyout would also block Nokia and stop it from acquiring a ready-made stake in the North American enterprise market through a Palm takeover, while repositioning Motorola against BlackBerry in the corporate world. "If they own Palm, all of a sudden Motorola becomes Microsoft's best hope for competing against RIM and Apple."

"It all makes sense," comments a financial analyst who wished to remain nameless (and faceless as well).

A private equity buyout is still said to be Palm management's preferred option, however. Motorola, Nokia, and Palm haven't yet responded to calls for comment.

Palm's stock was up 1.80 percent, or 32 cents a share, at $18.14 in Monday trading on the Nasdaq.

— Dan Jones, Site Editor, Unstrung

(2)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
menexis
50%
50%
menexis,
User Rank: Light Beer
12/5/2012 | 4:03:57 PM
re: Palm Deal in the Final Stretch
It's funny reading this article again, because the Palm Pre is creating a lot of buzz and their stocks are even up because of this
joset01
50%
50%
joset01,
User Rank: Light Beer
12/5/2012 | 4:03:56 PM
re: Palm Deal in the Final Stretch


Watch for a new column tomorrow morning ;-)


 


DJ

From The Founder
The independent evaluation of Nokia's key virtual network functions (VNFs) was a defining moment for the Finnish giant.
Flash Poll
Live Streaming Video
Charting the CSP’s Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it’s going from two industry veterans.
LRTV Documentaries
Leading Lights 2016 Highlights

5|25|16   |   02:26   |   (1) comment


Some of the high points from this year's Leading Lights awards dinner at the Hotel Ella in Austin, Texas.
LRTV Documentaries
Light Reading Hall of Fame 2016

5|23|16   |   05:43   |   (0) comments


Find out who has been welcomed into Light Reading's Hall of Fame this year.
LRTV Custom TV
ZTE TM Forum Highlights

5|23|16   |     |   (0) comments


ZTE showcased its new ICT solutions at TM Forum in Nice.
LRTV Interviews
Gamma's MD on the Emergence of UC2

5|20|16   |     |   (0) comments


Gamma Communications Managing Director David Macfarlane believes the unified communications (UC) market has reached a tipping point.
LRTV Custom TV
The Ultimate 5-Minute Guide to Digital Customer Engagement

5|20|16   |     |   (0) comments


In this short video, you will hear all about how Digital Customer Engagement is the key to meeting customer expectations, keeping them happy, and maximizing revenue. VP Product & Marketing at Pontis, Ofer Razon, breaks down for us the five essential capabilities for successful Digital Customer Engagement. Don’t miss!
LRTV Custom TV
NFV in 2016: Part 1 – NFV Use Cases Get Real

5|19|16   |   05:57   |   (0) comments


Consensus is building around the key use cases for NFV, including managed IP services at the network edge and on customer premises, which can generate new revenues from enterprises/SMBs and consumers; Evolved Packet Core to support LTE migration; and adjacent technologies, such as TAS and IMS, to support VoLTE and next-generation charging and policy control ...
LRTV Custom TV
Nokia's Steve Vogelsang on NFV – Part 3

5|19|16   |     |   (0) comments


Steve Vogelsang discusses the challenges of operational transformation and how Nokia helps its customers. Join Steve at the Big Communications Event in Austin the morning of May 24, on his keynote and optical networking panel.
LRTV Interviews
Level 3: Why UC Is In Demand

5|17|16   |   04:12   |   (1) comment


Andrew Edison, Level 3's senior VP of sales, EMEA region, talks about the drivers of growth in the unified communications services market.
LRTV Custom TV
ARM's OPNFV Action

5|17|16   |     |   (0) comments


At the ARM booth at MWC 2016, Joe Kidder and Bob Monkman speak to Light Reading about OPNFV and their upcoming action.
LRTV Custom TV
Nokia's Steve Vogelsang on NFV – Part 2

5|16|16   |     |   (0) comments


Steve Vogelsang gives advice to service providers on how to move to NFV. Join Steve at the Big Communications Event in Austin the morning of May 24, on his keynote and optical networking panel.
LRTV Interviews
Interoute CTO on NFV's Maturity

5|13|16   |   06:46   |   (1) comment


Matt Finnie, CTO at international operator Interoute, explains how NFV has made life easier in terms of logistics and how Interoute can now enable a 'software-defined moment' for its customers.
LRTV Huawei Video Resource Center
UBBS 2016 Highlights

5|12|16   |     |   (0) comments


Highlights of Huawei's UBBS event in Hong Kong.
Upcoming Live Events
September 13-14, 2016, The Curtis Hotel, Denver, CO
December 6-8, 2016,
June 16-18, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
A new survey conducted by Heavy Reading and TM Forum shows that CSPs around the world see the move to digital operations as a necessary part of their overall virtualization strategies.
Hot Topics
WiCipedia: Short Skirts & Back-Up Plans
Eryn Leavens, Special Features & Copy Editor, 5/20/2016
AT&T to Start 5G 'Friendly' Trial by 2016 End
Dan Jones, Mobile Editor, 5/24/2016
DT: Telcos Must Escape Vendor Prison
Iain Morris, News Editor, 5/24/2016
Google Doubles Down on Machine Learning, AI
Mitch Wagner, West Coast Bureau Chief, Light Reading, 5/19/2016
Eurobites: Be More European, EU Tells Streaming Services
Paul Rainford, Assistant Editor, Europe, 5/20/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
In this latest installment of the CEO Chat series, Craig Labovitz, co-founder and CEO of Deepfield, sits down with Light Reading's Steve Saunders in Light Reading's New York City office to discuss how Deepfield fits in with the big data trend and more.
Grant van Rooyen, president and CEO of Cologix, sits down with Steve Saunders, founder and CEO of Light Reading, in the vendor's New Jersey facility to offer an inside look at the company's success story and discuss the importance of security in the telecom industry.
Animals with Phones
Live Digital Audio

Our world has evolved through innovation from the Industrial Revolution of the 1740s to the information age, and it is now entering the Fourth Industrial Revolution, driven by technology. Technology is driving a paradigm shift in the way digital solutions deliver a connected world, changing the way we live, communicate and provide solutions. It can have a powerful impact on how we tackle some of the world’s most pressing problems. In this radio show, Caroline Dowling, President of Communications Infrastructure & Enterprise Computing at Flex, will join Women in Comms Director Sarah Thomas to discuss the impact technology has on society and how it can be a game-changer across the globe; improving lives and creating a smarter world. Dowling, a Cork, Ireland, native and graduate of Harvard Business School's Advanced Management Program, will also discuss her experience managing an international team focused on innovation in an age of high-speed change.