BlackBerry drops hostile takeover bid of Indian-owned firm (Lead)January 21st, 2009 - 4:07 pm ICT by IANS
Toronto, Jan 21 (IANS) Blackberry maker Research in Motion (RIM) has withdrawn its offer to make a hostile bid for acquiring an encryption technology company owned by an Indo-Canadian after its action was stalled by a Canadian court.Waterloo-based RIM had made an offer of $66 million to the shareholders of Certicom Corp, based at Mississauga on the outskirts of Toronto, after its talks with the management failed.
In a statement a day after the court verdict, RIM said it had “withdrawn its $1.50 per common share offer for all of the common shares of Certicom Corp. as conditions of its offer can no longer be satisfied as a result of the decision issued yesterday (Monday) by the Ontario Superior Court of Justice.”
Headed by Indian-origin Karna Gupta, Certicom had sought court intervention, citing that RIM had violated non-disclosure agreements with it while making its bid for takeover.
Certicom has been supplying encryption technology to RIM to secure its messaging system since 2000. The BlackBerry maker wanted to take over Certicom to get exclusive access to this technology which has made it a world leader in smart phones.