Major Palm Shareholder Urges Sale
Mark Nelson, a private investor who owns over 7% of Palm, has sent a letter to Palm's board recommending the company seriously consider a buyout. The letter comes amidst growing speculation on Wall Street that the company is up for sale and a recent rise in the Palm's stock price. More...
A copy of the letter, sent on tuesday, is available here from the SEC.
In the letter Mr. Nelson has general praise for Palm's management and recent successes but says "the company faces competitors who are larger and have significantly more leverage due to their market position, products and resources." He ultimately urges the board to "explore strategic alternatives, including a sale of the company."
Mr. Nelson goes on to talk about potential acquirers. He makes the case for RIM, HP, Dell and Apple as companies that would have the most to benefit. In regards to Apple he says "The prospect of Apple competing in the smartphone space is a daunting prospect for Palm. But all players in the smartphone space should similarly fear it." He recommends Apple as the ideal potential acquirer.
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