InterDigital Inc (IDCC)

[Gamco]

BlackBerry Surge Reversed After Company Denies Samsung Acquisition Talks

Update 5:40 p.m.: BlackBerry shares reversed course in after-hours trading Wednesday after the company denied an earlier report that it was in acquisition talks with Samsung. Here is the entire statement:

“
BlackBerry Limited is aware of certain press reports published today with respect to a possible offer by Samsung to purchase BlackBerry. BlackBerry has not engaged in discussions with Samsung with respect to any possible offer to purchase BlackBerry. BlackBerry’s policy is not to comment on rumors or speculation, and accordingly it does not intend to comment further.”

The stock quickly shed its earlier gains. Within 15 minutes of BlackBerry’s 5:30 p.m. statement the stock was below $11 a share and sinking lower fast.

–

A report that Samsung has approached rival smartphone maker BlackBerry Limited about an acquisition sent shares of BlackBerry into a stunning reversal in the final moments of trading Wednesday. The long struggling stock moved from being in modestly negative territory to a gain of close to 30%. Shares climbed to a fresh 52-week high of $12.63 during regular trading hours and continued its ascent after-hours. Within five minutes of the closing bell the stock was above $13 a share, a level it has not seen since June 2013.

Wednesday was also the best day for BlackBerry since December 23, 2003 and the third best one day gain since the company went public (as Research In Motion Limited) in 1999.

The report from Reuters says that Samsung offered to pay as much as $7.5 billion to take over BlackBerry. The aim, the report says, is to tap into Canadian firm’s patent vast patent portfolio. In other words, Samsung wants BlackBerry for its parts. According to Reuters, Samsung proposed a range of $13.35 to $15.49 per share that would be as much as a 60% premium to BlackBerry’s price before the report.

BlackBerry’s Market Cap soared to $6.6 billion from $5.1 billion as of Tuesday’s close. At its peak in 2008 BlackBerry was worth more than $80 billion.

http://www.forbes.com/sites/samanthasharf/2015/01/14/blackberry-surge-reversed-after-company-denies-samsung-acquisition-talks/