Palm, Inc. (PALM) is down 8% today and just $3 away from its 52-week low. Friday’s speculation of Palm being acquired sent shares soaring and of course today they are right back down. The Wall Street Journal reported Palm Inc. has been "beset by taxing competitive conditions, is working with investment bankers to explore its strategic options." The Masters can’t help but think Carl Ichan and his new takeover dream of Motorola (MOT) could continue with taking out PALM in the same motion. Why not kill two birds with the same stone? If you haven’t heard Carl Icahn and Icahn Partners LP are each filing to acquire in excess of $119.7M and up to $500M of MOT common stock, while Icahn Partners Master Fund LP and Icahn Partners Master Fund 2 L.P. are each filing to acquire in excess of $500M, but less than 25% of the outstanding, Motorola common stock. If Carl was to have MOT and PALM in his back pocket, why he could have the whole world in his hands (hand-held products world that is). With PALM trading at current levels and with so much up in the air, it makes for an entertaining investment ride, but do you want to be on that train?
Palm, Inc. From The Stock Masters
