Palm Inc. today announced that the Palm Board of Directors has approved a reverse stock split and established a ratio of 1-for-20. As a result of the reverse stock split, every 20 shares of Palm common stock will be combined into one share of Palm common stock.
“The decision made by Palm’s Board of Directors to complete the planned reverse stock split in October 2002 is timely,” said Eric Benhamou, Palm chairman and chief executive officer. “It paves the way for the planned separation of our PalmSource subsidiary. It adjusts Palm’s capitalisation structure to appropriate levels. And it enables us to attract new investors. Meanwhile, the handheld industry is moving to a new growth phase, Palm’s market share is trending up, and we are entering the most comprehensive new product cycle in Palm’s history. I am convinced that this decision, combined with continued strong execution by Palm’s management team, will contribute to shareholder value creation.”Written by Palm PR for PMN Mobile Industry Intelligence.
This is at the upper end of the range authorised by Palm’s shareholders, underlining the extent to which Palm’s share price has collapsed. See PMN’s original 01/10/2002 analysis for further information.
Originally published by PMN Mobile Industry Intelligence, the subscription-based analysis and insight platform founded by Marek Pawlowski.