“Dell plans to grow its business by acquiring another company, a senior executive said Friday,” Sumner Lemon reports for IDG News Service.

“Dell had US$9.7 billion in cash and equivalents on its balance sheet at the end of its fiscal first quarter, which closed on May 1. That represents an increase of 16 percent since January 30, when the company ended its last fiscal year,” Lemon reports.

“There’s no shortage of speculation as to what companies Dell might be interested in buying,” Lemon reports. “Some see Palm as a logical target since buying the company would give Dell immediate access to a line of smartphones — a segment of the market that Dell officials, including CEO Michael Dell, have expressed interest in.”

“If Palm is a target, the upcoming Pre handset may be a principal reason,” Lemon reports.

MacDailyNews Take: Our take from January 21, 2009: “Palm’s Pre dog and pony show is nothing more than takeover bait. They simply do not have the resources necessary to create another mobile platform, especially one that is superfluous. If Palm’s Pre is not a ruse, then those responsible are kidding themselves.”

Lemon continues, “Others see rival Acer as a possible acquisition target for Dell.”

Full article here.