RIM had better get used to takeover speculation says analyst
Posted Dec 21, 2011 11:45:00 AM.
This article is more than 5 years old.
Despite reports today that Research In Motion rebuffed merger talks with Amazon.com, and that Microsoft and Nokia flirted with the idea of a joint offer for RIM, a leading analyst says takeover speculation will likely continue.
Globe and Mail technology reporter, Omar El-Akkad, tells 570 News, the only way for RIM to become an unappealing takeover target, is for the share price to come up.
“As long as the stock price keeps dropping, you’re going to hear more and more of these stories, and they’re going to be more and more serious; and the lower that stock price drops, the more these companies are going to say, ‘well why not’?”, said El-Akkad.
El-Akkad says RIM is a very attractive property right now, not only because of its cheap stock price, but because of its “intellectual property”, including engineering talent, and a very strong prescence in Latin America and Asia.
He also says RIM co-CEO’s Jim Balsillie and Mike Lazaridis are not only major shareholders, they hold considerable clout with fellow shareholders, and have made it clear to them, they do not want to sell.
