Although Palm has had a pair of critically-acclaimed smartphones, the Pre and the Pixi, the company has hit hard times and it is looking for a company in Asia to buy it. HTC, the world's fifth-ranking smartphone brand based in Taiwan, considered making a bid at first. However, they backed out after reviewing the finances of Palm.

Other big-time electronics companies made a pass on Palm. Huawei, the world's second-largest wireless telecoms equipment manufacturer, and rival ZTE declined to put in a bid.

However, news is circulating that Beijing-based Lenovo, the world's fourth-largest PC brand, is seriously considering to bid. Industry observers said Palm would fit well into Lenovo's current strategy that focuses on growth through acquisitions and movement into the wireless space.

Lenovo had over US$2.4 billion in net cash reserves at the end of 2009, according to its website, while Palm could potentially fetch $1.3 billion if the deal pushes through.

Source:  Reuters

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