RIM stock drops on rumours it could sell handset unit
In this Wednesday, May 30, 2012, file photo, three people on the floor of the New York Stock Exchange display their Blackberry smartphones. (AP Photo/Richard Drew)
Published Monday, June 25, 2012 9:57AM EDT
TORONTO -- Stock in BlackBerry-maker Research In Motion Ltd. (RIM) dropped nearly three per cent early Monday, amid widespread reports in the media that the company was considering selling its handset manufacturing unit or a stake in the whole company.
On the Toronto Stock Exchange, the company's stock fell 28 cents to $9.84 shortly after markets opened.
The reports, based on an article in the Sunday Times newspaper that did not cite sources, were immediately downplayed by the Waterloo, Ont.,-based company.
Others have speculated in the past that the company might be sold or broken up, or that its hardware division might be separated from its services division, the highly touted global network that relays device messages.
"RIM has hired advisers to help the company examine ways to leverage the BlackBerry platform through partnerships, licensing opportunities and strategic business model alternatives," RIM said in a email Sunday Times article.
"As (CEO) Thorsten (Heins) said on the company's fourth-quarter earnings call: 'We believe the best way to drive value for our stakeholders is to execute on our plan to turn the company around. This remains true."
The BlackBerry has hired JPMorgan Chase & Co. and RBC Capital Markets to help evaluate its options.