Shares of PalmSource dipped Monday on an investment bank's report that said key licensee PalmOne will use Microsoft's OS in its Treo line of devices. That would be nice to have a treo650 in windows mobile os.

PalmOne representatives said the report was based on a misunderstanding, adding the company is platform agnostic and said that as policy, it did not comment on products that may or may not be under development. PalmSource declined to comment on the report. Microsoft representatives declined to comment on what they called rumors and speculation.

The report added, "We know that an announcement is virtually certain," citing comments made by executives following an event for PalmOne analysts on Oct. 5. However, the report said the analysts, Charles Wolf and Justin Udelhofen, did not know when a Microsoft version of the Treo would be released.

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