Palm Shareholders OK Reverse Split
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SAN JOSE, Calif. (AP) _ Palm Inc.’s shareholders on Tuesday authorized the company’s board to implement a reverse stock split to bolster the handheld computer maker’s sagging share price.
The board can set the reverse split ratio between 1-for-10 and 1-for-20 at any time before April 1, 2003.
Palm, which has seen its stock price plummet from $100 per share at its initial public offering in March 2000 to 66 cents on Tuesday, has suffered from product rollout glitches, weak demand and stiff competition from Microsoft Corp.
The company says the split will help it offset the decline in share price associated with the planned separation of Palm’s hardware and software businesses. The separation is expected next year.
A reverse split would help Palm prevent delisting from the Nasdaq Stock Market _ a possibility if shares continue to trade below $1.
In Tuesday trading, the stock closed down 8 cents, to 66 cents.
Also Tuesday, Palm shareholders re-elected three board members, including Benhamou, Jean-Jacques Damlamian of France Telecom and David C. Nagel, chief executive of Palm’s software unit.
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