Not yet, at least. According to a statement issued to
The Next Web
, Lenovo is downplaying reports that it is
looking at BlackBerry maker
Research In Motion (NASDAQ:
) as a possible acquisition target.
"In general, we do not comment on M&A rumors or
speculation," the statement read. "We are aware that Lenovo's CFO
[Wong Wai Ming] was speaking broadly about M&A strategy in a
recent interview. RIM was raised as a potential target by the
journalist and Mr. Wong repeatedly answered in a manner
consistent with all of our previous statements on M&A
strategy: Lenovo is very focused on growing its business, both
organically and through M&A. When inorganic ideas arise, we
explore them to see if there is a strategic fit."
Thus, Research In Motion must still search for a buyer -- if
it wants one. At this point there is no reason to believe that
the company should or wants to be acquired.
It may have explored the possibility of a buyout last year (at
which time things were not looking good for the company,
especially after BlackBerry 10 was delayed), but that does not
mean Research In Motion intends to sell. It may have merely
wanted a backup plan incase BlackBerry 10 fails.
Right now, one can only speculate on BB10's future. Investors,
which have helped Research In Motion's stock rise more than 130
percent over the last four months, seem to have a lot of faith in
the company's ability to turn things around. Some investors may
also be buying into the hope that Research In Motion will be
acquired whether BlackBerry 10 is successful or not.
Research In Motion is currently down more than seven percent.
This is significantly different from where the stock was two
weeks ago -- at that time, Research In Motion was up nearly six
Is this a sign of things to come for the golden child of Wall
Street? Research In Motion is up nearly 40 percent year to date.
If the company continues to decline (RIM dropped two percent last
week), those gains could be greatly diminished.
In fact, this is exactly what happened to another tech giant
-- Apple (NASDAQ:
). In the first half of 2012, Apple rose more than 37 percent.
During the latter four months, Apple declined by roughly 20
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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