HTC drops its bid for Palm as Lenovo emerges as front-runner

According to a report from Reuters, HTC has dropped the idea of acquiring Palm after a close examining the ailing company’s books. Reuters quoted an unnamed source in Taiwan who was involved in the dead deal as saying “there just weren’t enough synergies to take the deal forward.” This means HTC has joined a growing list of companies that have decided against making a bid for Palm including Dell and Huawei. The CEO of Huawei-rival ZTE informed Reuters his company has not made a move. At present it seems Lenovo, which had over $2.4 billion in cash reserves at the end of 2009, is the new front-runner having said to be entertaining the idea of making an offer to the tune of $1.3 billion dollar, or 30% above Palm’s market cap. Shares in Lenovo rose in Asia on the news.

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