RIM Shares Jump on Takeover Whispers By EVELYN M. RUSLI
dealbook.nytimes.com
Rumors of circling suitors breathed new life into Research in Motion‘s shares on Wednesday.
The battered Blackberry maker surged nearly 12 percent at the opening bell to $14 per share, before pulling back slightly.
Shares are stirring this morning amid reports that several technology giants have recently mulled bids for Research in Motion. Late Tuesday, Reuters reported that Amazon, the maker of the Kindle, had hired bankers this summer to consider a potential offer, though it was eventually rebuffed by Research in Motion, which prefers to remain independent. Meanwhile, The Wall Street Journal reported that Microsoft and Nokia had also considered a joint bid for the cell phone maker. The Journal, however, said that it was unclear how serious talks were or their current status.
Research in Motion has been a common target of takeover speculation this year, amid a string of weak financial reports, service outages and persistent concerns that its mobile operating system is bleeding market share to rivals Apple and Google. Earlier this month, Research in Motion reported that profits plunged 71 percent for the third quarter, in the wake of a costly service outage and deep discounting for the company’s Playbook tablet. In another blow to shareholders, the company also announced that it was delaying the roll-out of its new operating system, Blackberry 10, to late 2012.
The troubles at RIM has weighed heavily on the stock. Since the start of January, shares of RIM have tumbled 77 percent.
While RIM’s management may be set on staying the course, its investors are becoming increasingly restive.
In October, Jaguar Financial Corporation, a Canadian activist investor hoping to agitate change, said it had the support of shareholders representing 8 percent of the company’s shares. The financial firm has repeatedly called on the company to install new leadership and explore all strategic options, including a sale of RIM. |
