Dell announces intention to acquire or merge with Palm or Acer in 2009?

Even though Dell had a tough first quarter, it is sitting on nearly $10 billion in cash and equivalents and is "looking for opportunities" to expand its business through acquisitions, according to a Dell executive.

The executive quoted in the IDG News Service article is Steve Felice, president of the company's small and medium business unit. Felice refused to name the companies under consideration, but the article said unnamed observers believe that Palm or Acer are potential targets.

Michael Dell recently said that his company is interested in "smaller-screen devices", which could mean smartphones or some other sort of mobile device. Palm is getting ready to launch its new smartphone, the heavily hyped Palm Pre, and Acer has a strong netbook line as well as a huge footprint in the PC market.

Prediction: Dell announces its intention to acquire or merge with Palm or Acer on or before December 31, 2009. The acquisition/merger does not need to go through by that date, and indeed may be derailed by regulators or some other unforseen factor. However, Dell or one of the companies involved needs to make a public announcement about its intention to take part in a merger or acquisition, in the form of a news release or statement to the press by the end of the year. 

Image: Dell Studio 15 laptop (Dell.com)