Mon Nov 16, 2009 9:35 am
Palm shares surged amid rumors that Nokia may be eyeing the Pre and Pixi maker to bolster its portfolio of smartphones to better compete with rivals Apple's iPhone and Research in Motion's BlackBerry devices.
The takeover speculation pushed Palm shares up 8 percent and call volume to nine times their normal level -- with more than 80,000 call contracts traded by midday.
For months, chatter of a Palm buyout as bubbled up from time to time.
In September, investors speculated that Nokia was planning to bid for Palm -- but nothing ever happened.
Palm shares have slid down 30 percent since then.
The Sunnyvale, Calif.-based company is an attractive target for companies that need to bolster their smartphone presence to challenge Apple's iPhone and Research in Motion's BlackBerry devices.
Handset maker Motorola and tech companies Dell and Microsoft have all been named as potential suitors.
Palm and Nokia representatives were available to comment.
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