GO
Loading...

Enter multiple symbols separated by commas

Palm Hires Morgan Stanley To Find A Buyer

Investment bankers from Morgan Stanley are advising Palm on its options as the maker of the Treo smartphone seeks a buyer, according to several sources familiar with the situation.

Shares of Palm rose 11% on Friday to as high as $18.08, their highest level in eight months, on renewed speculation that leading mobile phone maker Nokia was eyeing the company.

A technology banker, who spoke on condition of anonymity, said on Friday there was potential interest from both strategic and private equity buyers in bidding for Palm, and a separate banking source said the company was up for sale.

But the technology banker said the company's stock run-up made it more challenging for private equity to bid for the company versus strategic bidders, who have more opportunities to cut costs.

On Sunday, a third source told Reuters that Morgan Stanley was advising Palm on its options.

Shares of Palm have vaulted more than 25% this year, boosted by persistent rumors it is a takeover target. The rally has lifted Palm's market capitalization to about $1.7 billion, slightly more than total revenue in its last fiscal year, which ended in May 2006.

Palm has long been seen as as a target. Speculation increased last week when technology news Web site Unstrung said Nokia or a private equity firm may be the leading candidates to buy Palm at around $20 a share, citing unnamed sources.

Motorola , the No. 2 handset maker, has also been mentioned as a potential buyer for Sunnyvale, Calif.-based Palm, which makes personal digital assistants as well as a line of mobile phones that keep track of appointments, data and e-mail.

Morgan Stanley declined comment. Palm was not available for comment.

Contact U.S. News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

  • Google's has floated the idea of making internet-connected teddy bears that will have the ability to control devices in the home.

  • A worker adds a liner and handle at the Mr. Ice Bucket factory in New Brunswick, New Jersey

    If you've stayed at the Venetian, a Trump property or a Marriott, you've probably used a made-in-America ice bucket.

  • Facebook's new Menlo Park Campus building 20, in Menlo Park, California.

    We tour Facebook's new digs in Menlo Park, designed by storied architect Frank Gehry. The new office campus sprawls across 430,000 square feet and sports a 9-acre rooftop park.

U.S. Video