RIM Falls 9.5% on Speculation Buyers Dropping Off: Toronto Mover
Research In Motion Ltd. (RIMM) fell the most in more than three months as investors speculated that the BlackBerry maker’s possible acquirers are dropping off.
RIM declined 9.5 percent, more than erasing gains made late last week when the company said it wouldn’t rule out a sale of the company as part of its strategic overhaul.
Chief Executive Officer Thorsten Heins said last week RIM is exploring the possibility of licensing its new operating system and partnerships after reporting sales that missed analysts’ estimates for a fifth consecutive quarter. He said he would consider a sale while stressing that is not the “main direction” for the Waterloo, Ontario-based company.
RIM slid to $13.01 at the close in New York, its biggest drop since Dec. 16. The stock gained 7.1 percent on March 30, the day after Heins laid out the company’s strategic options. Today’s decline leaves the stock 77 percent lower than where it was 12 months ago.
“My gnome is hearing that all bidders have walked from RIM,” Douglas Kass, founder of hedge fund Seabreeze Partners Management, said in a Twitter post today. In a phone interview, he confirmed the post was his.
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