RIM shares rise on takeover rumours

Blackberry maker RIM, which has had to make job cuts as it faces poor results, has seen its shares rise on the back of rumours that someone is set to buy the outfit.

RIM shares have fallen to half their 2010 value this year and lost 27 percent after it revealed dismal quarterly results and lowered its full-year outlook last week.

But according to Reuters, the outfit saw its share price suddenly rise as news that the outfit was cutting jobs circulated – along with a rumour that someone was interested in buying it.

The company began handing out pink slips to an unspecified number of its 17,500 workers globally. Local hacks have found that more than 200 had met their Waterloo, in Waterloo.

Analysts said that the job cuts showed that the outfit was planning to reduce costs faster than expected.

With shares in the company as cheap as chips at the moment, there are rumours that the company might be bought out.

The company’s management has been aggressive about buying back RIM’s own stock, and while company is worth less than it was at the beginning of the year, it still has a market cap of nearly $14 billion.

It is not clear who would be a potential buyer either. It would be tricky for any company to come up with the readies. Microsoft would once have been a good candidate to buy RIM, but it has just spent all its cash buying up a deal with Nokia. Besides, $14 billion is a bit steep.