Palm plumps for private equity pump

A REPORT said Palm is sell a 25 per cent stake to a private equity firm and drag in ex-Apple suits onto the board.

The Wall Street Journal said Palm will announce a deal today with Elevation Partners, which will throw $325 million into the pot in return for the quarter share.

While that move will cause dilution to existing shareholders stock, it will pay out $940 million to them, meaning that it has to finance another $400 million in new debt and use its own cash, said the Journal.

A board shakeup will see ex-Apple iPod genius Jon Rubinstein become executive chairman. µ

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