BlackBerry Shares Crash Back To Earth After Company Denies Samsung Rumor

In October, BBRY shares spiked (and dumped) on rumors that Lenovo had made an offer. Today, after a detailed report from Reuters explained that Samsung executives had offered to takeover the troubled phone-maker (or whatever they call themselves nowadays) and the stocks spiked up nearly 40% — perfectly running stop through the mid-Nov highs and squeezing shorts out of the market ... and now — after hours — BlackBerry (BBRY) issues a statement denying the whole thing... rigged much?

  • 1543ET - *BLACKBERRY RECENTLY APPROACHED BY SAMSUNG ON TAKEOVER: REUTERS
  • 1543ET - *SAMSUNG PROPOSED PAYING $13.35-$15.49/SHR FOR BBRY: REUTERS

As Reuters reported,

Samsung Electronics Co Ltd (005930.KS) recently approached BlackBerry Ltd (BBRY.O) (BB.TO) about buying the smartphone maker for as much as $7.5 billion in a play for its patent portfolio, according to a person familiar with the matter and documents seen by Reuters.

South Korea's Samsung proposed an initial price range of $13.35 to $15.49 per share, representing a premium of 38 percent to 60 percent over BlackBerry's current trading price, the source said.

Executives from the two companies, which are working with advisers, met last week to discuss a potential transaction, the source said, asking not to be identified because the conversations are private.

*  *  *

And then... at 1730ET

BlackBerry Limited (NASDAQ: BBRY)(TSX: BB) ("BlackBerry") is aware of certain press reports published today with respect to a possible offer by Samsung to purchase BlackBerry. BlackBerry has not engaged in discussions with Samsung with respect to any possible offer to purchase BlackBerry. BlackBerry's policy is not to comment on rumors or speculation, and accordingly it does not intend to comment further.

  • *BLACKBERRY AWARE OF REPORTS ON POSSIBLE OFFER BY SAMSUNG
  • *BLACKBERRY NOT IN TALKS WITH SAMSUNG

 

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IB Trading 4 years ago Member's comment

Funny the perceptive of bear "crash" and even in PM $BBRY stock is still UP 15% from yesterday low

Moon Kil Woong 4 years ago Contributor's comment

Samsung isn't so stupid, nor is Apple, nor is most all the handset market players.