Five Business Hookups You Might See

Why it might not happen: Mack is still focused on rebuilding MS from the ruins left behind by Phillip Purcell. Furthermore, MER has already picked off the best of breed when it acquired a 49% stake in BlackRock in an asset-for-stock swap last year. Biting off LM or TROW will come at a heavy short-term price because it won't come cheap. It will be dilutive for many years.

3. Hewlett-Packard (HPQ Quote) to acquire Palm (PALM Quote).

Why it makes sense: Hewlett-Packard failed in its early attempt to deliver a handheld PDA several years ago. Palm has an excellent device with the Treo line of smartphones but is now facing brutal competition from Research In Motion (RIMM Quote) and Apple (AAPL Quote) in the consumer segment.

Hewlett and the other Microsoft(MSFT Quote) Windows-based computing companies are also facing stiff competition from Apple as the iPod halo effect continues to attract users away from Windows to Mac. A combination of Hewlett-Packard and Palm would help to energize Palm and give Hewlett another key technology to combat the ever-growing Apple. Palm needs some strong marketing and logistical expertise, which Hewlett can offer. Lastly, Hewlett can swallow up Palm for pocket change.

Why it might not happen: Hewlett-Packard might be twice shy about getting into the PDA/smart-phone business. Furthermore, HPQ is still reeling from a recent management shakeup in the wake of an ethics scandal and threats of criminal indictments.