Palm shares drop after Reuters says unlikely to be bought with price so high

Shares of Palm fell 4.7 percent on Sept. 24 the day after a Reuters Dealtalk column that dispelled the notion that Palm could be a buyout target soon, because bankers and analysts deem its price too high. The smartphone maker`s shares had risen sharply on rumors that Finnish cellphone giant Nokia was interested in buying Palm. The Reuters story listed the rumored buyers, but explained the challenges of buying a company whose turnaround story was as yet difficult to measure, but whose high stock price had already made it too expensive. The Palm share price fall easily outpaced the 1.1 percent decline in the Nasdaq.