Research In Motion Soars on Takeover Talk

Shares of Research In Motion, the maker of BlackBerry handheld devices, soared to a 52-week high Friday on rumors of a takeover by H-P. The stock closed up $3.20, or 13.3%, to $27.28.

The takeover rumor was reported in Reuters on Friday afternoon. The notion struck some as reasonable, though not everyone had heard the chatter.

"Once a quarter or so, there are some sort of rumors about some company buying or taking over RIM," says Kevin Burden, a mobile device analyst for IDC. "RIM has a lot of IP, a lot of patents. With that much technological know-how, I expect they'd be a prime candidate for a buyout or hostile takeover."

"The volume of the stock is quite significant; the rumor might have some legs," he adds. On Friday more than 14.6 million shares of RIM traded hands, far above average daily volume over the past three months of 1.5 million shares.

However, at Banc of America, Ian Winer, co-head of U.S. equity trading, said he hadn't heard any talk today of a possible takeover of RIM by H-P, and his firm makes a market in both names. "On a quiet Friday, people always seem to find something to talk about," he noted.

Contacted for a response, RIM and H-P both declined, saying company policy was to refuse comment on stock price-related inquiries.

Pushed by Dell Deal

In the past, RIM management has been perceived as unlikely to sell.

But the rumor mill got a boost in April when RIM competitor Good Technology, a private company, inked a deal to allow Dell(DELL Quote) to use its software. Like RIM, Good offers handhelds that feature "always-on" email -- a huge selling point for potential corporate customers.

There's little love lost between the two companies: Since June 2002, RIM has filed four lawsuits against Good, charging that Good's products infringe on RIM's patents and that it engages in unfair competition and false advertising.