Is RIM ripe for a takeover?
With Research in Motion’s (RIM-T) share price continuing to slide lower, talk of the company becoming a potential takeover target has grown louder. But Sameet Kanade of Northern Securities tells BNN obstacles stand in the way of a takeover of the Waterloo-based tech giant.
“From an acquisition standpoint, there’s only a few key players that are going to look at RIM, but no one buys an asset when it’s on the decline,” he says. “We don’t think it’s Microsoft and we don’t think it’s Google.”
Kanade also says the co-CEO structure of RIM may also make a takeover difficult and expensive.
“If it does happen the pricing will be significantly higher than this, closer to the $60 to $65 share price because you got two guys (the co-CEOs) over there who control 5 percent each…the stock was $63 a few months ago and they’re not going to approve any bid until this thing is back at those levels,” he says.