Comments on: Palm Stockholders Approve Elevation Deal

Palm today announced that Palm stockholders have approved proposals that will permit Palm to conclude a $325 million investment by Elevation Partners, L.P., borrow up to $400 million in an associated debt financing, make a cash distribution of $9.00 per share to Palm stockholders, and make related adjustments to its equity plans.

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The meeting lasted about 12 minutes and...

SeldomVisitor @ 9/12/2007 12:22:26 PM #

...the results were as expected.

RE: The meeting lasted about 12 minutes and...

mikecane @ 9/12/2007 2:09:34 PM #

Where's Gekko's financial commentary? Or is he still running the numbers?

RE: The meeting lasted about 12 minutes and...

wildmantrader @ 9/12/2007 2:11:39 PM #

and as expected, the shorts will begin to FRY.

400 million dollars in debt

TreoAnon @ 9/12/2007 4:25:23 PM #

This is a bad time to take on $400 million dollars of debt!

Who is going to lend Palm this money just to see it paid straight out to existing shareholders and not invested in capital, marketing or R&D?

RE: 400 million dollars in debt

just_little_me @ 9/12/2007 5:47:03 PM #

You clearly don't have a clue about Wall St, or anything vaguely financial. Come back when you graduate from pre-school.

JLM.

RE: 400 million dollars in debt

TreoAnon @ 9/12/2007 6:37:01 PM #

Clearly I do understand that this deal was setup before the recent credit crunch when private equity firms were selling any and all debt, CV-lite and with low risk premiums. The prospectus estimated a 2.6% premium for CV-lite loan. Those terms look silly in the present credit markets where CV-lite loans are as dead as the Bush-Cheney presidency and high premiums are being required.

Who now will buy this 400 million dollars of debt, and if they do, at what premium and with what restrictions? Perhaps some foolish bank already committed to the deal, and if so what will they do with this debt?

RE: 400 million dollars in debt

mikecane @ 9/13/2007 12:43:30 PM #

So what does that all mean? Is Palm basically looking for someone to place a bet on its future? Where's the (alert: Suit term ahead!) upside for the company and execs?

Ex Apple Alumni find home at Palm

hhfs @ 9/12/2007 4:27:15 PM #

Donna Dubinsky
Jon Rubinstein
Fred Anderson

Can any accumulation of Apple (there are more right?) drop outs help Palm dig itself out of the hole and possibly make some potential competition for the iPhone take over? It will be interesting to see. So far Danger's Apple drop outs have not had major success though they do make a device that I am surprised more Palm users didn't pick up on since Palm has been sucking for so long that its almost surprising they are even still around. If and when Google does come into the picture I think its pretty likely you will hear Palm's name mentioned in the media about as much as you do the Danger Inc. people.