Palm said on Wednesday that will buy rival Handspring in an effort to strengthen its grip on the market for handheld devices. Palm, which also announced it has finalized plans to spin off its PalmSource software division, will purchase Handspring in a stock deal. The transaction will grant Handspring stockholders 0.09 of a share of Palm--and no shares of PalmSource--for each share of Handspring common stock. Based on Tuesday's closing price, that values each Handspring share at $1.09, slightly lower than Handspring's closing price of $1.11.
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