Certicom urges shareholders to reject RIMs planned takeover

By on Dec 31, 2008 at 2:23 PM
Software December 31, 2008

Certicom, whose encryption software is featured in every BlackBerry device on the market as well as countless other handsets, has publicly urged its shareholders to reject a proposed hostile takeover from RIM. RIM has offered $1.50 per share ($66 million CAD) for the Mississauga, Ontario-based company, a figure which the company feels is grossly inadequate. In a full page advertisement published in a nationally syndicated Canadian newspaper, Certicom’s directors asked that its shareholders reject RIMs offer for several reasons including: 1) The offer does not even match cash on hand and assets. 2) Certicom’s new leadership has increased revenue by 54% year-over-year. 3) RIM violated previous confidentially and standstill agreements. Certicom has an appearance scheduled in the Ontario Superior Court of Justice on January 9th and has filed for a cease of trade with the Ontario Securities Commission. RIM continues to argue that its offer is not only fair but will greatly benefit Ceritcom and its shareholders.

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  • Kaiser

    RIM will take over the cell phone world eventually, we all know it will happen. Certicom is just trying to prolong that effort.

  • PocketPick

    An offer of $1.50/share is really a bit of a low-ball, especially if the assets and cash the company has (minus debt) does exceed the purchase price that RIM is asking.

  • mangenius

    Dont fight it Certicom leave that cash on hand in place for RIM

  • Galvatron

    Now is not the time to pull a Yahoo

  • Tech_Terry

    Certicom is currently trading at $1.85 well above the $1.50 offer price. It is also significantly higher then the $0.54 it was trading at 30 days ago, when the bid went public. So I think the price will (or has already) been adjusted higher.

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