The board of handheld maker Palm has set Oct. 15 as the date for a 1-for-20 reverse stock split. On Tuesday, Palm shareholdersthe split, which Palm says will pave the way for its efforts to split into two companies, one that makes handhelds and the other that develops and licenses the Palm operating system.
Palm said that it plans to distribute shares in the new operating system company to its shareholders sometime in 2003. The reverse stock split is designed to allow shares of both companies to trade above Nasdaq's $1 minimum price. Palm shares have been trading at around 66 cents per share.