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In a sworn statement made public today, former Palm CEO Edward Colligan says Jobs brandished patents when trying to get Palm to agree to a deal in which neither company would nick the other's employees.
A paper trail of e-mails published by The Verge from court filings suggest that technology firms agreed not to recruit employees from each other.
Hewlett-Packard says it will purchase the PDA and smartphone pioneer for $5.70 per share, a premium of 23 percent, in a deal expected to close by the end of July.
The company still sees hefty losses even as it reports strong sales of smartphones driven by the new Palm Pre.
Steve Jobs in 2007 wanted to stop Apple execs from jumping ship to Palm, but Palm's then CEO Ed Colligan wouldn't strike a deal, Bloomberg News reports.
Ed Colligan is stepping down as chief of the smartphone maker, and Jon Rubinstein takes over.
Revenue and earnings plummeted in the quarter that ended before the Palm Pre went on sale, but execs expect the new smartphone to spur a revival.
After struggling to keep up with the competition, it looks like Palm is back in the smartphone game.
Despite reporting dismal quarterly results, CEO says company is strategically on track and will launch the Pre on time. Palm envisions an entire product line built on its new WebOS.
Despite speculation that Apple was thinking about taking legal action against Palm's Pre, Palm's CEO thinks Apple was just staking out a defensive position.