updated 10:45 am EDT, Wed June 4, 2003
Palm today announced , which was created five years ago by the people who had founded Palm, according to the AP: "The deal calls for the Silicon Valley rivals to merge after Palm completes its spinoff of PalmSource, the unit that makes the Palm operating system for handheld computers. The transactions are expected to be completed back-to-back in the fall, and the merged company will be renamed, the companies said. Under the proposed terms, Handspring's shareholders will receive 0.09 Palm shares -- and no shares of PalmSource -- for each share of Handspring common stock owned. Palm will issue approximately 13.9 million shares of Palm common stock to Handspring's shareholders on a fully diluted basis."