AOL and Nokia to Invest in Palm IPO

From the Yahoo PR Wire:
WASHINGTON, Dec 13 (Reuters) - Palm Inc., maker of the Palm Pilot hand-held computer devices and a wholly-owned subsidiary of 3Com Corp. (NasdaqNM:COMS - news), filed with federal regulators to raise up to $100 million in an initial public offering.

The company said it plans to use net proceeds from the offering to pay a dividend and other amounts due to 3Com, capital spending, marketing expenses, working capital and potential investments. More...

Palm did not disclose how many shares it plans to sell, or the projected range per share in its preliminary prospectus filed with the Securities and Exchange Commission, information that will likely come in subsequent filings.

The company has sold more than five million of its hand-held devices as of Dec. 1 and more than 29,0000 third-party developers have registered to create applications based on the Palm platform, according to the prospectus.

America Online Inc. (NYSE:AOL - news), Motorola Inc. (NYSE:MOT - news) and Nokia (NYSE:NOK - news) have agreed to purchase through private placements shares equal to up to 4.5 percent of Palm stock, according to the prospectus.

The company, based in Santa Clara, Calif., applied to sell its shares on Nasdaq under the symbol "PALM" (NasdaqSC:PALM - news).

The underwriters include Goldman, Sachs & Co., Morgan Stanley Dean Witter, Merrill Lynch & Co. and Robertson Stephens.

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