Hewlett-Packard to buy Palm for $1.4B in cash
Palm Inc. a pioneer in the smart phone business that couldn't quite make the comeback it needed, has agreed to be bought out by Hewlett-Packard Co. for about $1.4 billion in cash.
The two Silicon Valley companies announced Wednesday that the deal will see HP pay $5.70 for every Palm common share and certain preferred shares. Palm had closed trading Wednesday at $4.63 but traded as high as $18.09 in the past 52 weeks. In after-hours trading, Palm shares jumped $1.25, or 27 percent to $5.88 — meaning some investors were willing to bet another suitor will step forward. HP shares dipped 35 cents to $52.93.
