As we went to press, US industry sources were reporting that Treo maker Palm was about to be taken over. Nokia is a leading contender, though the smartphone maker’s board would reportedly prefer a private-equity buyer; two are said to be interested, even at a per-share price of $20 (Palm has recently been trading at $18.90 on bid rumours).
Nokia’s interest would be logical enough – the Finnish company has found North America a tough slog. Motorola might also be a candidate, with a preemptive strike specifically intended to block a Nokia bid.
Palm is a minnow in this market, with a capitalisation of less than $2bn and a market position way behind RIM, Motorola and Nokia.
For its second quarter ended in November, Palm reported a 95% drop in net income. That was largely due to a one-off tax gain in the year-before period, but its operating revenues were down 12% and the Treo 750 was late in shipping.
Palm is a minnow in this market, with a capitalisation of less than $2bn and a market position way behind RIM, Motorola and Nokia.
For its second quarter ended in November, Palm reported a 95% drop in net income. That was largely due to a one-off tax gain in the year-before period, but its operating revenues were down 12% and the Treo 750 was late in shipping.