Lenovo Group Limited (PINK:LNVGY) (HKG:0992) rejected last week’s rumors that the company is considering to acquire Research In Motion Limited (USA) (NASDAQ:RIMM) (TSE:RIM) as part of its options to boost its mobile business.
CNET reported that a spokesperson for Lenovo Group stated the company generally does not comment on rumors and speculation. The spokesperson clarified that statement of Wong Wai Wing, chief financial officer of the company during an interview with Bloomberg at the World Economic Forum at Davos, Switzerland, last week was taken out of context by the media.,
During the interview, Wai Ming said, “We are looking at all opportunities. We’ll have no hesitation if the right opportunity comes along that could benefit us.”
The spokesperson explained, “We are aware that Lenovo’s CFO Wai Ming was speaking broadly about M&A strategy in a recent interview. Research In Motion Limited (NASDAQ:RIMM) (TSE:RIM) was raised as a potential target by the journalist, and Mr. Wong repeatedly answered in a manner consistent with all of our previous statements on M&A strategy; Lenovo is very focused on growing its business, both organically and through M&A. When inorganic ideas arise, we explore them to see if there is a strategic fit.”
After the rumors of a possible Lenovo Group Limited (PINK:LNVGY) (HKG:0992) buy out, the shares of RIM jumped 4 percent. Prior to that, the stock value of the company surged to a 13-month high after Thorstein Heins, CEO of Research In Motion Limited (NASDAQ:RIMM) (TSE:RIM) announced the company’s plan to form strategic alliances with other companies and to sell its handset business.
On the other hand, Canadian Finance Minister, Jim Flaherty commented that the government would examine any agreement carefully between RIM and any Chinese company. The Canadian government previously restricted foreign ownership of local companies because of security issues.
Aside from Lenovo, Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) was also rumored to be a potential buy of RIM. However, Samsung spokesperson, James Chung also clarified that the company is not interested in acquiring the Canadian firm, and both companies did not approach each other to discuss any deal.