Is Motorola Pressing Palm?

Motorola (MOT) chief Ed Zander's sudden schedule change fuels speculation that the company is preparing a deal with Palm (PALM).

Zander was scheduled to give a keynote speech at the CTIA Wireless industry conference next week in Orlando, Fla., but he had an "unforeseen scheduling conflict" and had to cancel, Bloomberg reported Tuesday.

Zander's surprising absence from the high-profile event helps add to the ongoing rumors that Palm is taking offers from heavyweights in the mobile phone business and private equity.

"There's a process being run," said one hedge fund manager, referring to bankers shopping Palm around to private-equity groups. The investor has been a longtime holder of Palm stock and clearly would be a beneficiary if the company gets a good takeout price.

The iconic PDA maker has struggled recently as new smartphones have threatened the company's Treo phone. Adding to the pressure is the upcoming release of Apple's (AAPL) iPhone, which could steal a big chunk of the high-end phone market.

Observers say Palm's attractiveness lies with its business services expertise. Outfits like Nokia (NOK) or Motorola could use Palm as a entry to corporate sales and a weapon against Research in Motion's (RIMM) BlackBerry email devices.

But other industry watchers aren't as willing to bet that Zander's absence signals a Palm deal.