RIM Extends Takeover Bid For Certicom

RIM Extends Takeover Bid For Certicom

In the latest development of Research In Motion's takeover bid of security-specialist Certicom, RIM said it will extend its expiry date of its offer from Jan. 15 to Jan. 27.
The acquisition once seemed like a natural fit because RIM already licenses Certicom's Elliptic Curve Cryptography products for its line of BlackBerry smartphones. The smartphone maker has been in acquisition talks since February 2007, but those proved fruitless. In early December, RIM made a takeover bid of about $53 million.



But Certicom's management felt the offer was too low, and it vowed to fight the acquisition. The company purchased ad space in local newspapers against the takeover, and it urged stockholders to vote against the bid.



Certicom has also asked the Ontario Superior Court of Justice to block the bid, and a hearing is scheduled for Jan. 9. The security company also said RIM violated confidentiality agreements and it has requested the Ontario Securities Commission to cease trade order. RIM said it is "vigorously opposed" to these actions, and it will be bringing its own proceedings before the court and regulatory body.