(Corrects 2006/2007 profit figure to $56 million from $35
million in sixth paragraph)
* Palm seeking offers -Bloomberg
* Working with Goldman, Qatalyst Partners -Bloomberg
* Palm declines to comment
* Frankfurt-listed shares up 11.2 pct
* U.S.-listed shares up 7.7 pct
(Adds background; updates shares)
By Tarmo Virki
HELSINKI, April 12 Smartphone maker Palm Inc
PALM.OPALM.F, which has not turned a profit in its battles
with rivals Apple and RIM, has begun seeking offers for the
firm, Bloomberg said, citing three people familiar with the
A spokesman for Palm in Europe declined to comment.
Palm, which makes the Pre and Pixi phones, is working with
Goldman Sachs Group Inc (GS.N) and Qatalyst Partners to find a
buyer, Bloomberg news agency said.
Frankfurt-listed Palm shares were up 11.2 percent at 4.27
euros at 1112 GMT, after the smartphone maker's stock see-sawed
last week on takeover rumours and options market chatter.
In pre-market trading in the United States, Palm shares were
up 7.7 percent at $5.56 compared with their previous close of
Last year, Palm introduced its WebOS operating system, which
won media praise, but failed to impress the buying public. It
shipped a total of 960,000 smartphones in the February quarter,
but only 408,000 of those were sold to consumers.
Palm last reported annual profit for the fiscal year ending
May 2007, of $56 million. It posted an operating loss of $265
million for the year to May 2009.
Factbox on Palm, click on [ID:nLDE63B0YA]
"Palm's limited scale, distribution and weak global brand
outside the United States all point to a takeover as the next
chapter in the Palm story," said CCS Insight analyst Geoff
"The company has developed a highly valuable asset in webOS.
The challenge for Palm is finding a buyer prepared to pay a
premium for an immature platform when many potential suitors
have already invested heavily in Android."
Palm has for years been mentioned as a potential takeover
target for much larger companies -- such as Lenovo Group
(0992.HK) [ID:nLDE63205T] -- hoping to enter or to expand their
presence in the mobile market.
Taiwan's Economic Daily News said on Friday HTC Corp
(2498.TW), the world's No.5 smartphone maker had "opened
discussions about an intent to acquire" Palm.
Technology companies Dell Inc DELL.O and Microsoft Corp
(MSFT.O), and handset manufacturer Nokia NOK1V.HE and Motorola
Inc MOT.N have all been named in the past as potential
(Additional reporting by Sakthi Prasad in Bangalore and
Victoria Howley in London; editing by Lincoln Feast, Erica
Billingham and Karen Foster)