Research In Motion has lost so much value that an acquirer could pay a 50% premium and still buy the BlackBerry maker for a lower multiple than any company in the industry .
RIM, onceworth $83 billion ,hasfallen more than 80% from its record three years ago as Apple's iPhone and Google's Android platform siphoned off smartphone customers . The Waterloo , Ontario-based company , which plunged last week after saying quarterly sales may drop for the first time in nine years , closed on Monday at $25.89 a share , or 4.7 times earnings next year . That's less than any communicationsequipment provider .
While Jim Balsillie and Mike Lazaridis , RIM's co-chief executive officers , said last week that their commitment to RIM is "stronger than ever ," the company may now attract Microsoft and Dell, BMO Harris Private Banking said . A buyer would get a smartphone maker thatisstilldominant among corporate clients , offers greater security with its own e-mail servers and generates more free cash versus its market value than any of its rivals . Paying $40 a share still values RIM at a discount to comparable companies in the industry .
"Given how significant the deterioration of the stock price has been , that alone will cause interest ," said Paul Taylor , who oversees $14.5 billion , including RIM shares , as chief investment officer at BMO Harris in Toronto . "RIM still has meaningful market share in the US and meaningful market share internationally , and RIM has an iconic brand ."
"It's not hard to envision a stock price that's somewhere between $40 and $50 a share ," in an acquisition , he said .
Tenille Kennedy , a spokeswoman at RIM, declined to comment .Since peaking in June 2008, RIM's shareholders have lost almost $70 billion , leaving it with a market capitalization of $13 .6 billion . The 82% decline was the biggest among communications-equipment providers worth at least $10 billion in the past three years .Over that span , Cupertino , California-based Apple advanced 74% to become the world's most valuable technology company , with a market capitalization of $292 billion . BLOOMBERG
source- times Of India
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management trainee-fundamental analysis
DENIP consultants Pvt Ltd
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