Blackberry, Samsung deny takeover report

Visitors try out a Blackberry smartphone at the exhibition floor of the 17th BangaloreITE.biz trade fair in Bangalore, India, on
Visitors try out a Blackberry smartphone at the exhibition floor of the 17th BangaloreITE.biz trade fair in Bangalore, India, on November 12, 2014

Canadian smartphone maker BlackBerry's shares jumped then fell back amid rumors of takeover talks with South Korea's Samsung, which both companies promptly denied.

BlackBerry's share price gained US$2.89 in the last hour of trading, closing on the Nasdaq up almost 30 percent at US$12.60 before falling back sharply to $10.53 in after-hours trading.

The Waterloo, Ontario-based firm said it 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," it said.

A report out of New York had earlier said Samsung had approached BlackBerry with an offer last week.

"Media reports of the acquisition are groundless," Samsung said in a statement in Seoul.

Analysts meanwhile continue to be bearish on BlackBerry, setting targets of US$7 to US$10 for its stock.

They expect the company to again post significant losses this year despite gradually improving sales expected from new product launches.

Tech analyst Carl Simard of Medici told AFP he was puzzled by Samsung's purported interest in its Canadian rival, saying BlackBerry's main feature—its security encryption—would add little value to Samsung's consumer-oriented smartphones.


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