Palm Reaches Settlement In HP Acquisition Suit

LOS ANGELES (AP) -- Palm Inc. says that it has settled a class action suit brought by shareholders who argued they did not get the best deal when directors approved the company's acquisition by Hewlett-Packard Co. for $1.4 billion in cash.

The Sunnyvale, Calif.-based company did not disclose the terms of the settlement, but said in a securities filing that it "will not affect the amount of the merger consideration that Palm stockholders are entitled to receive in the merger."

Palm shares added a penny to close at $5.68 Wednesday. HP in April announced it would pay $5.70 for every Palm common share.

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