Palm takeover expected this week: report

Palm takeover expected this week: report

Nokia (NOK1V.HE: Quote, Profile , Research) and up to three other potential bidders are interested in buying Palm Inc. (PALM.O: Quote, Profile , Research), which could be sold for some $2 billion as early as this week, a technology news Web site said.

Unstrung.com quoted unidentified sources close to the situation as saying Palm’s management preferred a private equity buyer. It speculated that Texas Pacific Group and Silver Lake Partners were among the private equity firms interested.

Another bidder for Palm, which makes the Treo smartphone and other handheld digital devices, may be Motorola Inc. (MOT.N: Quote, Profile , Research), the site said.

Shares of Palm, which have vaulted more than 33 percent this year on takeover rumors, rose 5 percent to $19.10 on Tuesday. Unstrung said the company would likely sell for more than $20 a share. It had 102 million shares outstanding as of December.
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Sources have previously told Reuters that Palm hired Morgan Stanley to pursue a buyer. Unstrung said that Morgan Stanley wanted to wrap up a deal by Thursday, when Palm is scheduled to report quarterly results.

Texas Pacific, Nokia and Motorola representatives declined comment. Silver Lake was not immediately available for comment.

“We make it a practice not to comment on rumors or speculation. We are focused on growing our business,” said a spokeswoman for Palm.

Palm has long been tossed around as a target, thanks to its popular Treo line of smartphones that hold thousands of personal contacts and appointments, as well as surf the Web and send e-mails.