subject: Hp's Acquisition Of Palm Behind The Scenes: 5 Fierce Competition For Companies - Hewlett-packard [print this page] Late last month, HP officially announced the acquisition of Palm, the Palm for a long time for this last painting on the fate of the war to an end. However, in the Palm before the U.S. Securities and Exchange Commission reports, many in this fight out behind the scenes information is disclosed. According to the report, a total of 16 companies has to contact the Palm, but HP is in a final 5 companies involved, which lasted nearly a month of bidding to win the battle, finally realized the desire to acquire Palm.
Palm said in the report, the company early in February this year, fell into a serious financial problem, they are three months than the financial statements of public concern but also a few weeks earlier. February 17, the company set up a committee headed by the CEOJonRubinstein to discuss programs to help the company out of the woods, at the time included opening WebOS license or sell companies.
From February 25 to April 1, Palm's management and advisers and a total of 16 companies were discussed, eventually including five companies, including Hewlett-Packard proposed offer. In the report, only the eventual acquisition of the HP was named the other four companies Zeyi A, B, C, D to replace. HP and A, B companies are trying to buy the Palm Inc., C, D only hope that the acquisition of Palm's original patent.
3 , Palm board of directors decided to sell the company is the best solution. They believe that open WebOS authorized dilute the value of Palm's intellectual property rights, and difficult to solve long-term problem. Board order management, potential buyers should be told to focus on proposed "total purchase" offer.
4 13, Hewlett-Packard made the first bid price of 4.75 U.S. dollars per share, totaling approximately one billion U.S. dollars, and required to give 30-day exclusive negotiating period. A company subsequently submitted in April 15 6 billion cash offer, B company suggested a longer time-consuming conversion program.
Receiving A, B, after the program, Palm informed the HP, unless they improved offer, otherwise they would not grant an exclusive negotiating period. But HP rejected the proposal. At the same time, Palm finds A, B's offer to shareholders no good, and inform them of the offer is not competitive, the two companies subsequently withdrew from the competition.
4 18 , C companies a 6-7 U.S. dollars per share, and can be completed within 14 days of purchase. April 19, Palm to HP and C acquired the company sent a draft agreement.
4 20-21, Palm and HP executives held a two-day meeting. HP will offer subsequently increased from 22 to 5 dollars per share. The next day, C Company to offer down to 5.5 U.S. dollars per share to the Palm provided a revised draft protocol. The draft contains a number of Palm not want to see the terms, such as longer, more risky trading period, and if the acquisition were unable to reach the 60 million U.S. dollars and other compensation. Palm and C companies of 23 to 25 in-depth talks, but did not reach a compromise.
This meeting in the middle, Palm CEO Jon Rubinstein24 day directly to the HP position, the offer is not competitive, must be "significantly enhance the offer immediately," be able to continue negotiating. HP later in the day 5.7 U.S. dollars per share made a final offer. Then in the 25th, JonRubinstein told the C company, they already have a better offer.
C company informed the Palm, they will not raise its offer, but still willing to buy 800 million U.S. dollars and a WebOS Palm patent non-exclusive license. Palm board of directors discussed the program that day, and ultimately rejected.
From 24 to 28 HP and Palm for the final negotiations. Goldman Sachs hired accountants in Palm endorsed this program, the acquisition ultimately released to the outside world.
Finally, there is an interesting detail, Palm said the company throughout the negotiations, has never signed the NDA C confidentiality agreement. So maybe in the near future, the company's name would be known to the outside world. Guess who? Lenovo, ZTE, HTC, Dell ?
