Report: Palm Takeover is Imminent

Technology news site Unstrung.com says that a $2 billion sale of Palm could be in its final stages, with three bidders interested in the company, one of which being cell phone maker Nokia.

Rumors of a sale have persisted for much of the last week, as the once dominant PDA maker has faltered in the face of competition from Microsoft and RIM, maker of the BlackBerry. While Nokia seems to lead the bidding, it is said that management would prefer a private equity buyer.

Two groups are said to be in the running there, including Texas Pacific Buyers and Silver Lake Partners. However, if they hope to best Nokia, they may need to consider making a bid of more than $19 or $20 per share. Even Motorola is considering a bid, it is rumored -- more as a strategic move to block Nokia.

Palm is scheduled to report its results on Thursday, and Morgan Stanley (who the company has apparently tasked with finding a buyer) is pushing to have a deal wrapped up by the time the results are announced.

So far no one involved is publicly commenting on the Unstrung story. However, the company's Treo line of smartphones is quite popular and have a loyal user base, giving any potential suitor an already developed market and product.

Analysts warn that the recent run up in the share price of Palm -- now around $19 -- may give some buyers pause. Others believe that companies like Nokia and Motorola may not be seriously considering a buyout of Palm, considering both have their own smartphone businesses.