Harbinger Capital buys 10% of Palm

Dylan Bushell-Embling
16 Apr 2010
00:00
News
Daily News

US investment company Harbinger Capital Partners has purchased nearly 10% of Palm for an undisclosed sum.

The New York hedge fund bought 16 million Palm shares, or 9.48% of the handset maker, which put itself up for sale this week.

Palm shares jumped up to 10% yesterday on news of the investment on Wednesday, Reuterssaid, and closed 1.5% higher yesterday at $5.40.

Palm has been struggling for some time, with its shares dropping 63% in Q1 after a partnership with Verizon Wireless fell through. It has been hemorrhaging money and holds less than 2% of the smartphone market.

Harbinger made headlines last month with an ambitious plan to build a wholesale-only LTE network covering most of the US by 2015.

It would use spectrum owned by satellite operators SkyTerra and Terrestar Networks. Harbinger owns the former and a stake in the latter.

The company also has invested in US mobile operator Sprint Nextel as well as the New York Times.

Related content

Comments
No Comments Yet! Be the first to share what you think!