Palm shares jump 13%

Palm, Inc. (NASDAQ:PALM) shares jumped after the company said it will receive $83.9 million through an expanded public share offering, to help cover the costs of launching the Pre smartphone.

Palm said late on Monday that it expanded its public offering of common stock to around 23.125 million shares, at $6.00 each.

Those terms were announced after the company said it would remarket 18.5 million common shares held by private equity firm Elevation Partners.

The shares underlie preferred shares and warrant units held by Elevation. Palm had said it will receive net proceeds in excess of the $49 million that Elevation will recoup through the sale.

The company, which warned last week of weaker-than-expected quarterly revenue because of slower sales of older phones, had been considering such a share remarketing to prepare for the launch of the Pre phone in the first half of 2009.