Harbinger Capital buys 10% of Palm

Dylan Bushell-Embling
16 Apr 2010
00:00

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.

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