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.
