PALM Rises on HTC Buyout Chatter
Shares of Palm are leading the tech sector higher today, as it is up over 12% in early friday morning trading on very high volume. As was the case earlier this week, another round of buyout speculation is fueling the rise once again.
This time the chatty mouths on Wall street would have you believe that Taiwan based HTC is now interested in acquiring Palm Inc. According to MarketWatch an unnamed Chinese newspaper is said to be the source. The article has some humorous quotes from analysts over the recent round of M&A chatter. HTC is not commenting on the rumor and a US based HTC spokesperson is quoted by Reuters as saying "To the best of my knowledge this is just a rumor."
"Every day there is a different rumor about who is going to buy Palm," said Kevin Hunt of Hapoalim Securities on Friday. "I could make a list of eight companies who could buy it. But would they buy it for more than $1 billion? I just don't know."
Just a few days ago a similar rumor about Lenovo Group sparked a 20% bounce for Palm shares. HTC and Palm have done business in the past as HTC was the contract manufacturer for a number of Treo smartphone models.
PALM closed Friday at 5.16 a share, for a gain of 11% on the day.