Palm Inc. shares surge: $100 million funding from Elevation Partners

Palm Inc. shares saw a surge on Monday following a cash injection from venture capital firm Elevation Partners. Elevation decided to offer $100 million of funding for the communications company. Palm Inc. shares rose 56 cents to close at $3.05, that’s an increase of 22.5 percent.

Palm Inc. who makes Treo and Centro phones said that Elevation decided to purchase preferred stock at $3.25 each, which is a premium of 31 percent over the closing price of $2.49 on Friday. Palm has said that they expect the deal to be complete by the end of January.

The announcement is just what Palm needed, after reporting last week a loss for their second fiscal quarter. The cell phone maker has been struggling, as they face tough competition from other Smartphone’s on the market, such as the Apple iPhone 3G, and the range of Blackberry phones from RIM.

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