RIM Withdrew its Certicom Takeover Bid
by The PocketBerry Team
RIM withdrew its takeover bid for Certicom Corp after their court order blocked the deal. RIM announced Dec. 3 that it would offer 1.5 Canadian dollars ($1.20) per share, or about 66 million Canadian dollars ($52.6 million) for Certicom, which makes digital encryption technology for wireless communications. Certicom, based in Mississauga, Ontario, asked for an injunction against the takeover, arguing RIM had violated a 2007 nondisclosure agreement between the companies and used Certicom’s proprietary information in drawing up its offer to shareholders.
The companies had been in contact since 2007 about a possible deal, but Certicom refused to grant RIM exclusive buyout talks and said it would look for competing offers.
Monday’s court ruling means Certicom shareholders will not be able to accept RIM’s offer and that RIM will not be allowed to make competing offers should another buyer come forward.
