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UPDATE: BlackBerry Spikes 30% On Samsung Acquisition Report; Shares Give Back Gains As Talks Denied

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UPDATE: BlackBerry Spikes 30% On Samsung Acquisition Report; Shares Give Back Gains As Talks Denied
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Shares of BlackBerry Ltd (NASDAQ: BBRY) spiked up nearly 30 percent Wednesday following a Reuters report that Samsung was interested in acquiring the company for upwards of $7.5 billion.

Samsung may be looking to access Blackberry’s patent portfolio and is rumored to have offered a range of $13.35 to $15.49 per share.

“The offer price would imply an enterprise value of $6 billion to $7.5 billion for BlackBerry, assuming conversion of $1.25 billion of convertible debt,” according to documents seen by Reuters.

The report claimed that “executives from the two companies, which are working with advisers, met last week to discuss a potential transaction.”

Blackberry declined to comment on the report and Samsung had not yet been reached.

BlackBerry recently traded at $12.55, up 29.25 percent.

UPDATE: BlackBerry issued a response around 5:30 p.m. EST: "not engaged in discussions with Samsung with respect to any possible offer to purchase BlackBerry."

In the after-hours session, shares of BlackBerry last traded at $10.78.

Posted-In: Reuters SamsungNews Rumors Best of Benzinga

 

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