Certicom urges shareholders to reject RIMs planned takeover
Certicom, whose encryption software is featured in every BlackBerry device on the market as well as countless other handsets, has publicly urged its shareholders to reject a proposed hostile takeover from RIM. RIM has offered $1.50 per share ($66 million CAD) for the Mississauga, Ontario-based company, a figure which the company feels is grossly inadequate. In a full page advertisement published in a nationally syndicated Canadian newspaper, Certicom’s directors asked that its shareholders reject RIMs offer for several reasons including: 1) The offer does not even match cash on hand and assets. 2) Certicom’s new leadership has increased revenue by 54% year-over-year. 3) RIM violated previous confidentially and standstill agreements. Certicom has an appearance scheduled in the Ontario Superior Court of Justice on January 9th and has filed for a cease of trade with the Ontario Securities Commission. RIM continues to argue that its offer is not only fair but will greatly benefit Ceritcom and its shareholders.
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