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Nokia could snap up Palm

Nokia could snap up Palm

Unofficial rumours circulated over the weekend, hinting at a possible takeover of mobile technology firm Palm by industry-leading manufacturer, Nokia.

Although neither company has commented publicly on the veracity of the claims, the media buzz caused shares in Palm to jump in value by eight per cent to just over £7.

Frederic Ruffy, an expert in market options, told news agency Reuters that there was significant investor activity caused by reports of the potential takeover.

Some were shoring up their commitment to the firm by buying further into Palm options, whilst others were realising an immediate gain by selling up after the initial increase caused by the rumours.

Nokia has expressed interest in purchasing Palm in the past. Back at the start of 2007, when a takeover was allegedly on the cards, Morgan Stanley valued Palm shares at £12 each, although no offer was ever placed on the table by the Finnish mobile manufacturing giant.

It has been reported that Nokia is not alone in expressing an interest in taking over Palm, with other significant names including Microsoft, Motorola and Dell mentioned in connection with takeover bids.

However, it is predicted that an figure of at least £1.2 billion would be needed in order to be representative of a serious offer.

Experts have stated that the licensing of Palm's web operating system would prove to be a highly attractive asset in any takeover deal.

However, since Nokia already invests heavily in its own Symbian and Maemo mobile platforms, the likelihood of a merger occurring in the near future has been dismissed by some commentators.

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