Earlier this week BlackBerry (NASDAQ:
) gained a much-needed boost after the company announced the
domestic release date for the Z10. The smartphone maker also
benefited from renewed speculation of a Lenovo takeover. Lenovo
and BlackBerry have been rumored to merge since last year. While
the company had wholeheartedly dismissed the
that it would acquire Nokia (NYSE:
), Lenovo execs seem much more interested in taking control of
the BlackBerry empire.
Two months ago Lenovo's CFO, Wong Wai Ming, was
as saying that BlackBerry (known as Research In Motion at the
time) was one of many opportunities the company was looking
"We'll have no hesitation if the right opportunity comes along
that could benefit us and shareholders," he told
Days after the interview was published, Lenovo execs attempted
to stifle Ming's comments with a
about its stance on M&As.
"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."
Earlier this week it seemed as if an inorganic idea had
finally presented itself.
Lenovo CEO Yang Yuanquig told
that a BlackBerry buyout "could possibly make sense."
"External growth is all about opportunities," he said,
according to the Google (NASDAQ:
) translation. "You can not rely solely on it to develop. So we
will rely primarily on our own forces, while remaining vigilant
on the market and its players. As for BlackBerry, the file could
possibly make sense. But first I have to analyze the market well
and understand what is the exact weight of this company."
Clearly the translation is not exact. Nonetheless, Yuanquig's
comments have reignited speculation for the takeover.
Investors should not get their hopes up just yet, however.
, the merger is unlikely to ever occur.
Taiwan-based sources told the publication that Canada "may not
approve the acquisition due to Lenovo['s] status as a large
Indeed, the Canadian government has been one of the greatest
concerns for those that may be interested in BlackBerry. As one
of the largest companies in Canada, it could be difficult for any
firm to take control of the smartphone maker.
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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