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Rim Advances on Reports It May Have Been Acquisition Target

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Submitted By vehence
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Dec. 21 (Bloomberg) -- Research In Motion Ltd. surged as much as 12.6 percent in German trading after reports said Microsoft Corp. and Nokia Oyj mulled a joint bid, while Amazon.com Inc. considered buying the maker of the BlackBerry smartphone.
RIM “turned down takeover overtures” from Amazon because it wanted to fix its shortcomings independently, Reuters reported yesterday. That was followed by a Wall Street Journal article that said Microsoft and Nokia “flirted with the idea of making a joint bid” in recent months. Both cited unidentified people familiar with the matter.
Microsoft looked at the option of making a joint bid with Nokia for RIM, according to a person with knowledge of the matter who asked not to be identified because the talks were private. The proposal, which included Nokia taking on RIM's hardware business, was discussed in an informal manner and wasn't taken to the board level, the person said.
Before the reports, RIM stock had tumbled to its lowest level in almost eight years. Last week, the company disclosed a delay in a new generation of BlackBerrys designed to fuel a rebound, adding to challenges that include lost market share and a tablet device that bombed with shoppers. The 78 percent plunge in RIM's shares this year before today leaves it vulnerable to an approach from suitors, said Sameet Kanade, an analyst at Northern Securities Inc.
Shares Surge
“At this valuation, it is a strong acquisition target,” said Kanade, who is based in Toronto and rates RIM a “speculative buy.” He doesn't own the stock.
RIM shares rose as high as the equivalent of $14.21 in German trading today. Yesterday, RIM advanced as much as 11 percent to $13.85 in late U.S. trading after closing at $12.52 in New York. Amazon.com and Microsoft were little changed in Frankfurt today. Nokia increased as much as 4.2 percent to 3.80 euros in Helsinki.
Jamie

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