TORONTO (Reuters) - Shares of Research In Motion Ltd rose 3 percent on Thursday after a report quoted China's Lenovo Group as saying a bid for the BlackBerry maker was among the options for boosting its mobile business.
"We are looking at all opportunities -- RIM and many others," Lenovo Chief Financial Officer Wong Wai Ming told Bloomberg in an interview at the World Economic Forum's annual meeting in Davos, Switzerland. "We'll have no hesitation if the right opportunity comes along that could benefit us."
Wong said Lenovo has spoken to RIM and its bankers about various combinations or strategic ventures, the Bloomberg report said.
Any bid for RIM, which Canadian Prime Minister Stephen Harper has described as a national "crown jewel," would face a rigorous review by the government to determine whether the deal would bring a "net benefit" to Canada.
Earlier this week, RIM shares surged to a 13-month high after Chief Executive Thorsten Heins said RIM may consider strategic alliances with other companies after next week's launch of devices powered by a new operating system.
In an interview with a German newspaper on Monday, Heins said RIM's review could potentially lead to the sale of its handset business or the licensing of its software to rival smartphone companies.
Analysts expressed skepticism about a Lenovo bid for RIM.
"Anybody who's serious about buying a company doesn't go talking it up...It sounds to me like a comment made more for publicity's sake than a serious approach for RIM," said Charter Equity analyst Ed Snyder. "It is a very long shot at the best. There's so many hurdles. One is regulatory of course."
Earlier this week, Canada's Industry Minister Christian Paradis told Reuters that the Canadian government might go to the extent of even reviewing a sale of RIM's handset business, following the comments made by RIM's CEO.
"I think third parties are always interested in making acquisitions, but to conclude that they (Lenovo) are going to buy RIM is a stretch," said RBC Capital Markets analyst Paul Treiber.
ALL OPTIONS EXAMINED
RIM announced a far-reaching strategic review last May under which it was expected to examine all options, from software licensing deals to an outright sale of the company.
After the comments from Lenovo, a RIM spokesman said the company had nothing new to report on its strategic review at this time.
"We continue to examine all available options to create new opportunities, focusing on areas where we will be more effective partnering rather than going it alone, and ultimately maximizing value for all stakeholders," said RIM spokesman Nick Manning.
The company, once a pioneer in the smartphone industry, has struggled in recent years as its aging line-up of devices lost market share to Apple Inc's iPhone and devices based on Google Inc's Android operating system.
RIM hopes its new touch-screen and keyboard devices, powered by its new BlackBerry 10 operating system, will help it claw back market share.
Shares of RIM were up 3.1 percent at $17.88 in midday trading on the Nasdaq. The Toronto-listed shares were up 3.5 percent at C$17.90. RIM is a volatile stock, and moves of 3 percent and more are not uncommon.
A spokesman for Lenovo said the comments made during the Bloomberg interview were consistent with previous statements on Lenovo's M&A strategy.
"Lenovo is very focused on growing its business, both organically and through M&A. When inorganic ideas arise, we explore them to see if there is a strategic fit," Lenovo spokesman Brion Tingler said in an e-mail.
RIM shares are down almost 90 percent from an all-time high of over C$148 in 2008, but the stock has rallied in the last four months as the launch of the BlackBerry 10 devices nears. Its shares have nearly tripled in value since dipping as low as C$6.22 in late September.
(Reporting by Euan Rocha in Toronto and Sinead Carew in New York; Editing by Frank McGurty and Leslie Gevirtz)
