Palm: The Book Is Out
One private-equity player phoned in to say that it is clear to folks that Palm is being shopped around to the usual suspects. "The book is out there," he says. "No doubt Nokia has seen the book."
But our source asks: How much would Nokia Corp. (NYSE: NOK) want to pay to get heavily back into the U.S. market? And might this not contribute to legal issues with CDMA giant Qualcomm Inc. (Nasdaq: QCOM)? A good portion of Palm's business is CDMA based. (See Nokia Files Suit Against Q'comm.) Another source says that these issues are negligible -- Nokia has already crunched the numbers based on Palm's cash position and cash flows and is comfortable with something as high as even $22 per share. But they just can't decide whether to pull the trigger.
Perhaps what it will take to get the whole ball rolling is a bit of jealousy, with enough interest that somebody pulls the trigger out of fear that they "missed" the deal. Maybe Motorola Inc. (NYSE: MOT) is the catalyst.
— Dan Jones, Site Editor, Unstrung