Palm Shares Drop As Takeover Deemed Unlikely
By midmorning Thursday, Palm shares had dropped 9.3% to trade at $17.64. The price is still up 25% from its level in early February, when the most recent round of buyout rumors began circulating again.
Most analysts have expressed skepticism about such a deal from the beginning, reports MarketWatch. Deutsche Bank analyst Jonah Goldberg wrote that such a buyout was "extremely unlikely" at the stock's current price. "Moreover, our analysis indicates that a financial buyer would be unlikely to pay a premium to the current price." Bloomberg also reports that Merrill Lynch and JPMorgan are also saying Palm is not likely to be acquired.
Palm will be reporting earnings and holding its quarterly conference call later this afternoon. Check back for a report later today.