Motorola Suing PalmSource for Breach of Contract?
This is a test post from Googles new RSS Reader Motorola Suing PalmSource for Breach of Contract? We've been following the story behind Access purchase of PalmSource for some time here at All About Palm. The news broke that Access had bought PalmSource for $18.50 per share. But there's more to the story than that. The hints of a bidding war were fuelled by Ed Colligan, who confirmed Palm,inc had shown interest but stepped up as the bidding war escalated between Access, American and European handset manufacturers. PalmSource's SEC Preliminary Proxy Statement allows us assume that Palm inc dropped out without bidding, the European company dropped out at between $15 and $15.90 per share. Access went to $17, and Motorola assumed they had a final winning bid of $17.25. At this point it gets interesting. Motorola assume they have a done deal, while 'Access submitted to PalmSource by e-mail an unsolicited increased offer to acquire PalmSource for $18.50 per share in an all-cash transaction.' (See SEC Statement page 14). At this point 'Company A,' now known to be Motorola, sent a 'response... stating that Company A would withhold further action until at least October 1, 2005' in regards to 'a termination provision in the purported merger agreement. ' Today the Chicago Sun Times reports that Motorola have taken PalmSource to court for this apparent breech of contract. From Phil Milfords...
