Nokia, RIM shares rise

Nokia, RIM shares rise

Shares of rivals Research In Motion and Nokia jumped by about eight and 16 per cent, respectively, as traders speculated that takeover offers for those two companies, which both have rich patent portfolios, could also attract premium bids.
National Bank Financial analyst Kris Thompson estimated that RIM's patents could now be worth $10 billion and said speculation on their value could lift RIM's share price in the short term.
“We believe Google’s acquisition of [Motorola Mobility] will set a floor-value for RIM’s shares around current levels,” Thompson wrote in a research note.
The deal also marks a major turning point in Google's strategic plan. Until now, it has largely confined itself to software development. Now, it also becomes a major manufacturer of telecom hardware.
What the deal won't change, according to Google, is the company's commitment to Android as an open platform.
"Motorola will remain a licensee of Android and Android will remain open," said Page. "We will run Motorola as a separate business."
Motorola Mobility was split off from the rest of Motorola in January. Motorola made the first commercial portable cellphone in 1983.
Motorola Mobility's shares soared $13.63 to $38.10 US Monday on news of the takeover offer, which requires regulatory approval.
The biggest shareholder beneficiary of this deal is billionaire activist investor Carl Icahn, who owns more than 11 per cent of Motorola Mobility. He had long urged Motorola to sell off its valuable patents.
Some analysts said Google's expansion into the cellphone manufacturing world could complicate relations with some Android partners who will suspect that Motorola will get a better deal from its new parent.
"Google will move from the position of partner to that of competitor to Android handset manufacturers, potentially placing significant strain on the Android ecosystem," Ovum analyst Nick Dillon wrote in a Monday note. He thinks some cellphone and tablet makers will switch to other software platforms if they detect the slightest evidence of favouritism.
But Google CEO Page pledged to treat all Android partners fairly. "Many hardware partners have contributed to Android’s success and we look forward to continuing to work with all of them to deliver outstanding user experiences," he wrote.