By Rex Crum
Palm Inc. posted big gains Thursday, leading the tech sector
higher after Hewlett-Packard Co. said it would acquire the
struggling maker of smartphones such as the Pre and Pixi for $1.2
billion.
Palm (PALM) shares climbed $1.11, or 24%, to $5.74 after H-P
said late Wednesday it would acquire Palm for $1.2 billion. The
deal values Palm at $5.70 a share.
The acquisition brings an end to months of speculation that Palm
was exploring options such as putting itself up for sale. The
company had recently banked much of its future on the success of
its webOS smartphone operating system, but lackluster sales of its
newest phones hastened the company's decline.
H-P (HPQ) shares gave up 54 cents to $52.76.
Motorola Inc. (MOT) put in a strong performance, rising 36 cents
a share, or 5%, to $5.74 after the company reported a first-quarter
profit before the market opened. Motorola said its results were
helped by shipping 8.5 million handsets, including more than 2
million smartphones such as the Droid.
Other gains came from Apple Inc. (AAPL), IBM Corp. (IBM), Cisco
Systems Inc. (CSCO), Yahoo Inc. (YHOO) and Google Inc.
The Nasdaq Composite Index (RIXF) rose more than 12 points to
2,484, while the Morgan Stanley High Tech 35 Index (MSH) edged into
positive territory. The Philadelphia Semiconductor Index (SOX)
slipped into the red.
Decliners included Dell Inc. (DELL), EMC Corp. (EMC), Microsoft
Corp. (MSFT), Oracle Corp. (ORCL) and Broadcom Corp. (BRCM).