RIM gains after Reuters report reveals that it may have been takeover target

With an exclusive Reuters report revealing that Research in Motion (RIM) may have been a takeover target, with Amazon having apparently mulled the possibility of acquiring it, the problems-plagued Canadian smartphone maker witnessed an 11 percent advance in late trading on Tuesday, following the news.

The Reuters’ report, which cited "people with knowledge of the situation", said that “takeover overtures” from Amazon as well as other potential suitors – including a joint bid by Microsoft and Nokia – have been turned down by RIM, which apparently “prefers to fix its problems on its own.”

The BlackBerry maker, which had seen its stock plunging to its lowest level in nearly eight years, before the Reuters report came in, witnessed a notable $13.85 rise on Tuesday after closing at $12.52 in New York.

In its last week disclosure, RIM had said that there would be a hold-up in its new generation of BlackBerry handsets which had been designed to reverse the company’s fortunes. The disclosure added to RIM’s challenges which already include lost market share and a tablet device that failed to attract the customers.

Noting that the 78 percent drop that the RIM shares underwent in 2011 leaves the company vulnerable to an approach from suitors, analyst Sameet Kanade, of Northern Securities, said that RIM can presently be rated as a “speculative buy.”