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Strategies & Market Trends : Speculating in Takeover Targets
ULBI 5.950+2.9%3:59 PM EST

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From: richardred11/13/2005 11:39:42 AM
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Rumor: RIM considering Palm buyout

From the unconfirmed rumors department: according to word on the street, Research In Motion is considering a buyout of Palm Inc. The reasoning behind the supposed move is murky, but it may be related to RIM's current patent litigation. If the case were to be decided against them, their entire business would effectively be shut down, killing the Blackberry technology. Owning the Treo line would allow them to survive and rebuild.

In any event, RIM could probably pull off such a deal. They're valued at $2.6 billion dollars, compared to about $950 million for Palm. Whether they want to is an entirely different question. It is worth noting, however, that the last time we heard buyout rumors was shortly before PalmSource was acquired by Access.
bargainpda.com
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