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News > Technology
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Handspring up 35% on Palm talk
graphic November 19, 2001: 4:23 p.m. ET

Departure of Palm CEO sparks merger speculation, Handspring denies rumors
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  • Palm CEO resigns - Nov. 8, 2001
  • Palm's challenging year - Nov. 9, 2001
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    NEW YORK (CNN/Money) - Shares of Handspring Inc. soared 35 percent Monday amid rumors that it is in merger discussions with rival Palm Inc.

    Santa Clara, Calif.-based Palm (PALM: up $0.44 to $3.87, Research, Estimates), whose shares gained nearly 13 percent Monday, declined to comment on the reports.

    Mountain View, Calif.-based Handspring (HAND: up $1.41 to $5.41, Research, Estimates) denied the rumors.

    "We are not in discussions with [Palm] about any kind of merger," a spokesman told CNN/Money.

    Handspring has not even been approached by Palm, the spokesman said. A Palm-Handspring combination has long been rumored and the departure of Palm CEO Carl Yankowski, who resigned earlier this month, has renewed speculation, he said.

    Now that Yankowski is gone, the maker of the popular hand-held devices, may be more open to merger discussions with rival Handspring, the interactive version of The Wall Street Journal reported Monday.

    Rumors also circulated last week that Microsoft Corp. was interested in buying either Palm or Handspring, analysts said.

    A Palm-Handspring merger would help Handspring the most, said influential analyst Andy Neff of Bear Stearns. "A combination with Palm would be a great deal for Handspring because Handspring has a weak product lineup," he wrote in a research note.

    Handspring, which is unprofitable, is primarily a device company using Palm's operating software, Neff said.

    Palm is restructuring and will begin operating as two separate business groups, one that focuses on hardware and another on the Palm operating system software.

    "There is complete overlap between the product lines (although Palm has a low-end line while Handspring does not) so there is no clear advantage [for Palm] of adding the product lines together," Neff said. graphic

      RELATED STORIES

    Palm CEO resigns - Nov. 8, 2001

    Palm's challenging year - Nov. 9, 2001





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    Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.

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