PalmSource Stock Surges on Acquisition News
Shares of PalmSource today rose 78%, up $7.89 with very heavy volume, on news of the ACCESS acquisition. Also, some new details about the details of the acquisition have been released.
The merger agreement has been approved by the board of directors of each of ACCESS Co., Ltd. and PalmSource, Inc. The acquisition is expected to be completed by the end of 2005 calendar year, pending regulatory approval and the approval of PalmSource's shareholders.
PalmSource today filed a 8-K statement with the SEC that reveals some details concerning the execution of the merger.
The filing reveals that ACCESS just recently established a wholly owned subsidary in the US called Apollo Merger Sub, Inc on September 2nd. Apollo Merger Sub is also headed by ACCESS' CEO Toru Arakawa. Apollo Merger Sub is the parent company which is the official company PalmSource is entering into agreement with.
This is purely speculation, but it is possible that the name Apollo could have something to do with the name of the new company.
The document also shows that if the merger is terminated or not approved, PalmSource would be required to pay ACCESS a $9.7 million termination fee. ACCESS plans to complete the merger in December 2005.