News: Bono Helps Bail Out Palm

jammin - June 4, 2007 09:14AM in Mobile, Small Form Factor, General News

Palm Inc.'s financial future looked a little more secure Monday as private-equity firm Elevation Partners said it will pump US$325 million into the mobile device manufacturer. In recent months, rumors have swirled that Palm would be acquired by either Motorola Inc. or Nokia Corp. as the company faces increasingly aggressive competition in the smartphone market. The recapitalization plan will see Elevation take a 25 percent equity stake in Palm, valuing the company at $8.50 per share, a premium of around 16 percent compared with the stock's performance over the last 10 trading days.