I was just listening to Research in Motion CFO Dennis Kavelman on Squawk Box this morning and when he was asked if there was any truth to the BlackBerry maker acquiring rival mobile PDA maker Palm, he didn’t definitively say no.
To be fair, he said that such a takeover was highly unlikely and really didn’t make sense for Research in Motion, however, when asked directly if the rumors were false and that RIM had no intention of merger talks with Palm, Kavelman would not flat out say no.
This could be a case of a corporate exec never saying never or could be that RIM never gives you a clue to what they are doing until they actually do it.
What do you think?
I saw the interview too and Kavelman said that the rumors started becasue Palms and RIMs earnings calls were at the same time.
There was an analyst on there a few minutes ago playing Deal or No Deal and when asked about a RIM taker of Palm, he said Deal… Definately a deal.
I think that book is open on this one.
If you think about it, it really doesn’t make sense for RIM to acknowledge a takeover unless it is hostile or the deal and terms are already done. RIM’s stock price went up after yesterday’s call but Palm’s went lower.
If RIM said they were going to buy palm, then their stock would probably shoot way up. Just makes no sense if the deal isn’t already done.