So, I’m following Palm’s stock in the wake of their announced acquisition by HP. And it’s funny, but I don’t think this is the final deal quite yet.
Palm’s currently priced at $5.81. HP said it would buy them for $5.70. Based on my experience with companies that get acquired (like, well, Handspring, which Palm bought, leading to me having these shares), after the acquisition announce’s, the stock price of the acquired company surges, but never to the exact amount they’re being bought for.
So, Palm, which was $4-something yesterday, should be around $5.50 today, if the deal was pretty much set in stone. There’s a little bit of risk that PALM shareholders don’t approve, or HP’s biggest shareholders sue to halt the purchase, or whatever, so the share price won’t hit that last $.20 cents until the day of acquisition.
Instead, the price of PALM is over $5.70. What the market says here is that it thinks maybe someone else will be buying PALM, or at least, that that isn’t the final purchase price. Given the way PALM’s one-third owned by Bono, or however that went, story isn’t quite finished just yet.