Palm stock climbed over 8 percent on Friday after speculation that it would be bought out by Finland-based Nokia. Trading was about 15 times heavier than usual in the morning and remained heavy until the end of the day. The spike mirrored a similar increase from late September.
Neither company has commented on the rumor.
Critics have pointed out that such a deal is unlikely as Nokia is heavily invested both in its deal with Symbian as well as its own Maemo Linux operating system. It's also been suggested that the speculation may have begun to help fuel share prices and boost the stock before shareholders have to cash in.
However, Nokia is currently lagging in smartphone share and has relatively simple touchscreen designs that go without the multi-touch present on some of its competitors' products, including Palm's Pre or Apple's iPhone.