April 9, 2010 / 1:49 PM / 9 years ago

Palm shares rise as takeover rumors persist

* Share rise 9.7 percent in early trading

* Takeover rumors persist; Taiwan’s HTC latest named

NEW YORK, April 9 (Reuters) - Palm Inc PALM.O shares jumped again on Friday, capping a volatile week in which the smartphone maker’s stock has seesawed on options market chatter and takeover rumors.

Shares of Palm climbed 9.5 percent to $5.09 in early trading on Nasdaq following reports that Taiwan’s HTC Corp (2498.TW) might be in talk to acquire the maker of Pre and Pixi phones, which also developed the WebOS operating system software.

The stock soared earlier this week as investors covered short positions on renewed speculation that the smartphone maker might be an acquisition target. [ID:n07121914]

The talk on Wednesday was focused on Lenovo Group Ltd (0992.HK) as a potential bidder for Palm. [ID:nLDE63205T]

Palm has for years been mentioned as a target for larger companies hoping to enter the mobile market or expand their presence. Analysts have called a deal unlikely, citing the cost of buying Palm and integrating its technology, but recent concerns about Palm’s viability have stirred up more talk.

A U.S. representative for HTC and a spokesman for Palm were not immediately available for comment. (Reporting by Franklin Paul and Sinead Carew, editing by Gerald E. McCormick)

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