ARTICLE: Nov-15-99
(from Canoe Money, breaking news)
canoe.ca
Technology News
"RIM stock rockets on report of Dell
deal"
OTTAWA, Nov 15 (Reuters) - Shares of Research In Motion Ltd.
(RIMM-O) , (RIM-T) roared ahead on Monday on a report that Dell
Computer Corp. (DELL-O) , the world's second-largest personal
computer maker, will launch a branded version of RIM's pager later
this week.
Stock in the Waterloo, Ontario-based firm gained C$8.80, or nearly
14.5 percent, to C$69.90 on the Toronto Stock Exchange in heavy
afternoon trade. On Nasdaq, it added 6-1/16 to 47-15/16.
Research In Motion, or RIM, makes palm-sized pagers that can send
and receive electronic mail.
Gains in the stock followed a story posted on the CNET Internet site
from News.com that quotes sources close to Dell as saying it will
launch a branded version of RIM's Blackberry pager later this week.
"It would make sense for them to partner with somebody like Dell,
but we can't confirm the story directly yet," said Robert Stone, analyst
at SG Cowen. He added that if there was a deal it "would probably
fully support the extra five points in the stock."
A spokesperson from RIM could not be reached from comment.
Duncan Stewart, portfolio manager at Tera Capital Corp., pointed out
that the stock would naturally appreciate given the possibility of a
Dell deal and suggestion that U.S. phone company BellSouth Corp.
(BLS-N) will renew an order with a purchase of 250,000 of RIM's
devices.
"There have been rumors swirling around about Dell being
interested in doing a marketing agreement with RIM for some time,"
Stone said.
"It wouldn't surprise us if that was the case because we know that
RIM has been in discussion with various PC manufacturers and it's
been a part of their strategy to leverage various other big partners, to
give them additional distribution." |
