Palm, Inc. (NasdaqGS: PALM) shareholder litigation in connection with alleged unfair takeover offer
On April 28, 2010, Palm, Inc. (“Palm” or the “Company”) announced that it had agreed to sell the Company to Hewlett-Packard Company ("HP") (NYSE: HPQ). Under the terms of the transaction, Palm shareholders will receive $5.70 in cash for each share of Palm they own for a total transaction value of approximately $1.4 billion.
The investigation concerns whether the Palm Board of Directors breached their fiduciary duties to Palm stockholders by failing to adequately shop the Company before entering into this transaction and whether HP is underpaying for Palm shares, thus unlawfully harming Palm stockholders. In particular, Palm shares traded at $14.14 per share as recently as January 15, 2010 and at least one analyst has set a price target for Palm stock at $14.00 per share. After the announcement, Palm shares traded in excess of $5.90 per share in after hours trading.