Certicom Shares Surge on Takeover Speculation, Analysts Say
By Sean B. Pasternak
c.2001 Bloomberg News
Hayward, California, Aug. 3 (Bloomberg) -- Certicom Corp. shares
rose as much as 55 percent on speculation that the maker of wireless
security software may be taken over, analysts said.
Shares of Certicom rose C$2.14 ($1.39) to C$6.15 in early afternoon
Toronto trading. Earlier they touched C$6.20. About 1.4 million shares
changed hands, more than triple the three-month daily average.
Certicom, whose shares had lost 87 percent of their value this
year, may be ripe for a takeover, said TD Securities analyst Josef
Vejvoda, who didn't name any likely buyers. The Hayward, California,
company fired 30 percent of its staff in June to cut costs.
``Their technology is a key ingredient for most wireless
providers,'' Vejvoda said in an interview. ``At this point, this would
be a great time to pick them up.''
John Scurci, a New Jersey businessman who controls 8.76 percent of
the company through shares owned by his family, said he has talked
with the company about selling all or part of its business.
``There was a general agreement that they have got to examine their
operations and options in light of this new environment,'' Scurci said |
