Palm looking for ‘reverse’ stock split
Palm is asking its shareholders to approve a reverse stock split, inside a bid to shore up its share value.
Inside a reverse stock split, shareholders finish track of less shares in hands, however the stock’s cost increases. Palm’s board of company directors believes the move will prepare the organization better for Palm’s intends to spin off its software division, PalmSource.
When the move qualifies, the board will select a reverse stock split ratio in one-for-ten to 1-for-twenty, and carry it out whenever before April 1. Shareholder’s is going to be requested to election around the proposals throughout the AGM on October 1.
“Having the versatility to affect a reverse stock split is yet another step toward creating two independent, well capitalized companies,” stated Eric Benhamou, Palm chairman and Chief executive officer.
Palm shares closed at $1.36 Friday, falling to $1.23 in extended buying and selling.