March 11 (Bloomberg) -- BlackBerry shares jumped the most in more than a month after Lenovo Group Ltd.’s chief executive officer was quoted in a French financial newspaper as saying his company may eventually consider buying the smartphone maker.
Lenovo’s Yang Yuanqing told Les Echos that a deal with Waterloo, Ontario-based BlackBerry “could possibly make sense, but first I need to analyze the market and understand what exactly the importance of this company is.”
The remarks echoed comments made in January by Lenovo Chief Financial Officer Wong Wai Ming, who told Bloomberg News that the company was “looking at all opportunities,” including BlackBerry. The Canadian smartphone maker began a review of its strategic options last year after losing market share to Apple Inc. and Samsung Electronics Co., raising speculation that it could be a takeover target.
Shares of BlackBerry, formerly known as Research In Motion Ltd., rose 14 percent to $14.90 at the close in New York, the biggest gain since Feb. 4. The stock has climbed 26 percent this year.
Any foreign bid for BlackBerry would need regulatory approval. The Canadian government automatically reviews all foreign takeovers of companies with asset values of more than C$344 million ($335 million) to determine whether the transactions are of “net benefit” to the country.
When asked in January about Wong’s comments, BlackBerry CEO Thorsten Heins said he didn’t know why the Lenovo executive had made those remarks.
“As always with these topics, we will talk about things when they are ready to be talked about and ready to be announced,” Heins said in an interview at the time. “There are other constituents in the process that need to be involved -- if there would be anything.”
BlackBerry reports quarterly results on March 28, when Heins is expected to update investors on any developments in the strategic review. In the past, he hasn’t ruled out an acquisition of BlackBerry, while stressing that he’s more focused on striking a licensing deal or forging some other partnership.
He said in January that he’s potentially open to licensing the new BlackBerry 10 software -- including to other handset makers, known as original equipment manufacturers, or OEMs.
“If OEMs come around and the business case makes sense as a whole, we would certainly consider it,” he said. “We’d not be prudent not to consider it.”
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