Firm with Apple ties to buy stake in Palm; IPod guru, Albany native involved in $325M deal with smartphone maker.(Business)

Byline: MAY WONG - Associated Press - with staff reports

SAN JOSE, Calif. - Smartphone maker Palm Inc. will sell a 25 percent stake to private-equity firm Elevation Partners for $325 million and name the former technical guru behind the iPod to be chairman, the company said Monday.

Albany native Roger McNamee co-founded Elevation with Apple Inc.'s former chief financial officer, Fred Anderson. Both men will join the Palm board.

The deal brings significant new leadership to Palm, which has been battling stiffening competition in a market that is only going to get tougher with Apple's June 29 debut of the iPhone.

As part of the deal, Palm …