Palm Sought Talks With Huawei: Report

Palm, the smartphone maker, sought acquisition talks with China's Huawei Technologies, a report says.
Author:
Publish date:

SUNNYVALE, Calif. (

TheStreet

) --

Palm

(PALM)

, the smartphone maker, sought acquisition talks with China's

Huawei Technologies

, a report says.

Huawei was approached through its investment bank sometime in mid-February for "preliminary discussions,"a source told

Reuters

. The source said discussions hadn't since moved forward.

Huawei said it was a matter of policy that it doesn't comment on speculation about possible mergers or acquisitions but it told Reuters Tuesday it "is always open to consider opportunities that will further enhance its business development."

It was reported Monday that

Palm had hired bankers

Goldman Sachs and Frank Quatrone's Qatalyst Partners to shop around for a buyer.

Suitors would likely pay more than $1 billion for Palm,

Reuters

reports citing bankers that say deals for technology companies these days are carrying a premium of 30%. Palm had a stock market value of about $870 million on Friday, prior to the stock rising after news of a possible acquisition was reported.

ZTE

, China's No. 2 telecom-equipment maker, also was seen as a potential buyer,

Reuters

reports.

-- Written by Joseph Woelfel in New York.

Follow TheStreet.com on

Twitter

and become a fan on

Facebook.