Loss making smartphone maker Palm is looking to sell itself and is seeking bids for the company as early as this week,it was reported today.
A spokesman for Palm in Europe declined to comment on the reports from Bloomberg, which cited people familiar with the situation.
The struggling smartphone maker, which is backed by Bono's Elevation Partners, is working with Goldman Sachs Group and Qatalyst Partners to find a buyer, the agency said.
Frankfurt-listed Palm shares rose 8 per cent today, but in a few trades.
Palm's shares had jumped on Friday, capping a volatile week in which the smartphone maker's stock seesawed on takeover rumours and options market chatter.
On Friday, Taiwan's Economic Daily News said that HTC has "opened discussions about an intent to acquire" Palm.
Palm, which develops WebOS phone software, has for years been mentioned as a potential takeover target for much larger companies - such as Lenovo Group - hoping to enter the mobile market or expand their presence.
"Palm's limited scale, distribution and weak global brand outside the United States all point to a takeover as the next chapter in the Palm story," said CCS Insight analyst Geoff Blaber.
"The company has developed a highly valuable asset in webOS. The challenge for Palm is finding a buyer prepared to pay a premium for an immature platform when many potential suitors have already invested heavily in Android," Mr Blaber said.
Reuters