PALM Gains 20% on Lenovo Takeover Rumor
Shares of Palm Inc. stock gained 20% in trading yesterday on a rumor that China based Lenovo Group was interested in the company. The stock closed Wednesday up 77 cents to close at $4.62.
While Palm's stock is no stranger to M&A rumors and insider trading moves, this latest bit of wall street speculation was kicked into high gear by a mention by CNBC anchor Jon "option monster" Najarian. He remarked that the play would be a "very nice cheap shot for Lenovo" and in the same sentence mentions U2's Bono should just do the deal himself.
On the serious side, Lenovo made no official comment, however this MarketWatch article mentions that the Lenovo CEO has mentioned in recent interviews that the company is looking into making more acquisitions to build out their mobile Internet business.