Shares of Blackberry are up 24% after Reuters reported Samsung approached BBRY about a takeover in order to access its patent portfolio. The companies met last week and Samsung could pay between $13.35 to $15.49 per share (spoke at $12.10 now), according to a Reuters source.
The total value would be $6 to $7.5 billion, which isn’t a significant flow for the Canadian dollar.
Executives from the two companies, which are working with advisers, met last week to discuss a potential transaction, the source said, asking not to be identified because the conversations are private.
About 20% of the company shares are sold short so there are some people is significant pain and getting squeezed at the moment. That also means there are plenty of incentives to spread rumors, although Reuters reporters aren’t the easiest to dupe.
Funnily enough, I was in the process of wrapping up a Blackberry Z30 to return at the very moment this rumor hit.
BBRY Blackberry
Update: Blackberry releases a statement and says ” BlackBerry has not engaged in discussions with Samsung with respect to any possible offer to purchase BlackBerry.” Shares down 11% in the aftermarket.