BlackBerry CEO Denied Samsung Deal Reports, Minister Says (1)
2015-01-16 18:35:24.110 GMT
(Updates with shares in fourth paragraph).
By Christopher Donville
(Bloomberg) -- Canadian Industry Minister James Moore said
he has been assured by BlackBerry Ltd. Chief Executive Officer
John Chen that there’s no substance to reports that Samsung
Electronics Co. had approached the company about an acquisition.
“I talked to him yesterday and he said it’s a rumor and
that there’s no truth to it,” Moore said in an interview Friday
in Vancouver.
Reuters reported this week that Samsung approached
Waterloo, Ontario-based BlackBerry with an initial takeover
offer of $13.35 to $15.49 a share, citing an unnamed person and
documents. BlackBerry and Samsung both put out statements
denying the report.
BlackBerry rose 1.4 percent to $10.25 at 1:12 p.m. in New
York, above its closing price on Jan. 13 before the Reuters
report, valuing the smartphone marker at about $5.4 billion.
Foreign acquisitions of Canadian companies for more than
C$344 million ($287 million) must be vetted by the government.
Since 2009, they can also face a national security review,
largely by a secret committee of senior officials that includes
the heads of two spy agencies.
In October 2013, the government rejected Manitoba Telecom
Services Inc.’s sale of its Allstream unit to an investment firm
co-founded by Egyptian billionaire Naguib Sawiris, citing
security concerns. The government didn’t provide details on what
those concerns were.
Moore said each deal is considered on its own merits and a
BlackBerry sale wouldn’t be prejudged simply because of the
company’s role in securely managing government devices.
For Related News and Information:
BlackBerry Pegged at $12 Makes Reported Bid Look Good: Real M&A
BlackBerry Falls After Denying Report of Talks With Samsung (1)
BlackBerry’s Patent Portfolio Is Wireless Trove for Acquirer (2)
Top Technology News: TTOP <GO>
Top Media News: TOP MED <GO>
--With assistance from Gerrit De Vynck in Toronto.
To contact the reporter on this story:
Christopher Donville in Vancouver at +1-604-331-1310 or
cjdonville@bloomberg.net
To contact the editors responsible for this story:
Sarah Rabil at +1-212-617-5992 or
srabil@bloomberg.net
Cecile Daurat, Stephen West
2015-01-16 18:35:24.110 GMT
(Updates with shares in fourth paragraph).
By Christopher Donville
(Bloomberg) -- Canadian Industry Minister James Moore said
he has been assured by BlackBerry Ltd. Chief Executive Officer
John Chen that there’s no substance to reports that Samsung
Electronics Co. had approached the company about an acquisition.
“I talked to him yesterday and he said it’s a rumor and
that there’s no truth to it,” Moore said in an interview Friday
in Vancouver.
Reuters reported this week that Samsung approached
Waterloo, Ontario-based BlackBerry with an initial takeover
offer of $13.35 to $15.49 a share, citing an unnamed person and
documents. BlackBerry and Samsung both put out statements
denying the report.
BlackBerry rose 1.4 percent to $10.25 at 1:12 p.m. in New
York, above its closing price on Jan. 13 before the Reuters
report, valuing the smartphone marker at about $5.4 billion.
Foreign acquisitions of Canadian companies for more than
C$344 million ($287 million) must be vetted by the government.
Since 2009, they can also face a national security review,
largely by a secret committee of senior officials that includes
the heads of two spy agencies.
In October 2013, the government rejected Manitoba Telecom
Services Inc.’s sale of its Allstream unit to an investment firm
co-founded by Egyptian billionaire Naguib Sawiris, citing
security concerns. The government didn’t provide details on what
those concerns were.
Moore said each deal is considered on its own merits and a
BlackBerry sale wouldn’t be prejudged simply because of the
company’s role in securely managing government devices.
For Related News and Information:
BlackBerry Pegged at $12 Makes Reported Bid Look Good: Real M&A
BlackBerry Falls After Denying Report of Talks With Samsung (1)
BlackBerry’s Patent Portfolio Is Wireless Trove for Acquirer (2)
Top Technology News: TTOP <GO>
Top Media News: TOP MED <GO>
--With assistance from Gerrit De Vynck in Toronto.
To contact the reporter on this story:
Christopher Donville in Vancouver at +1-604-331-1310 or
cjdonville@bloomberg.net
To contact the editors responsible for this story:
Sarah Rabil at +1-212-617-5992 or
srabil@bloomberg.net
Cecile Daurat, Stephen West