Dell Ready to Deal for Palm?

"Barron's writer Eric Savitz then speculated out loud (by his own admission) that perhaps Dell should just purchase Palm (NASDAQ: PALM), which had seen its fortunes shrivel in recent years, making it quite affordable, but was sitting on a potential winner with its well-received Palm Pre smart phone.

"Fast-forward three months, and now Collins Stewart analyst Ashok Kumar sent out a research note that shows Savitz was on to something, although does not mention him by name, and theorizes the merger "will be born of mutual necessity."

"Kumar thinks this would allow newly-appointed Palm CEO (and former Apple executive) Jon Rubenstein a chance to run Dell and let Michael Dell return to the chairman's job he held before returning CEO two years ago."

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