Takeover talk boosts RIM stock but sale isn't likely, analysts say
Reports of potential buyers circling Research In Motion Ltd. bolstered the BlackBerry maker’s stock Wednesday, although analysts said it’s more likely RIM will pursue a “deep partnership” than agree to an outright sale.
If anything, the reports suggest RIM’s board intends to resist takeover overtures and has renewed its faith in co-chief executives Jim Balsillie and Mike Lazaridis as the company works through a troubled transition to a new operating system.
“While we are encouraged by the news that there are interested strategic bidders for RIM, this news also seems to reinforce our view that management is unwilling to do a deal in the immediate future,” said Normura analyst Stuart Jeffrey.
“Management may feel that the solid cash position buys them some more time.”
The analyst was responding to separate reports late Tuesday that said online retailer Amazon.com, software giant Microsoft Corp. and hardware partner Nokia Corp. had informal merger discussions with RIM over the summer although no formal bids emerged.