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BlackBerry Acquisition by Samsung: Just another rumor

BlackBerry Acquisition by Samsung: Just another rumor

Reuters report on Samsung offering to acquire Blackberry appears to be false as both parties denied any acquisition talks. Reuters had earlier posted that Samsung Electronics recently offered to buy BlackBerry Ltd for as much as $7.5 billion, seeking its valuable patents as it battles Apple in the corporate market, – according to a person familiar with the matter and documents seen by Reuters.

South Korea’s Samsung proposed an initial price range of $13.35 to $15.49 per share, representing a premium of 38 percent to 60 percent over BlackBerry’s current trading price, the source said on Wednesday.

Even though the two companies met last week for a business transaction, they both denied any acquisition talks.

BlackBerry in a statement described the report as a rumor as BlackBerry has not engaged in discussions with Samsung with respect to any possible offer to purchase BlackBerry. 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.”

Samsung also denied any acquisition talks. Samsung says that it has no plans to acquire BlackBerry, also denying Reuters report. that claimed the South Korean company had recently offered to buy the struggling phone maker for up to $7.5 billion. Samsung gave a statement to Reuters tonight, in which it said media reports of an acquisition are “groundless.”

Just as the news of acquisition offer went viral, shares of Blackberry stock rose over 25%. However, Shares of BlackBerry fell back about 15% in after-hours electronic trading following the denial.

In a related story, Canadian newspaper Globe and Mail reported BlackBerry has shunned a handful of takeover overtures in recent months as its board and largest investor think its restructuring strategy will deliver greater shareholder value than current acquisition offers.

 

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