RIMM Receiving a Boost on Rumors
Last week, Carl Icahn announced he had pulled his proposal of nominees to overthrow the current board at Clorox (NYSE:CLX). The move signaled an end to Icahn’s pursuit to takeover the household cleaning company. Now, new rumors are swirling that Icahn may have his sights on a tech company.
The Wall Street Journal reports, “Shares of Research in Motion (NASDAQ:RIMM)-which if the tech sector were Highlights Magazine, would be the Goofus to Apple’s Gallant- are up more than 6% today on a heavily circulated market rumor that a unicorn is riding to its rescue.” The article reveals the unicorn to be none-other than Carl Icahn. Traders “are saying Icahn has taken a stake, but nothing is confirmed,” BGC Partners tech analyst Colin Gillis told Reuters.
The BlackBerry maker has been struggling as the company competes with Apple (NASDAQ:AAPL), Google (NASDAQ:GOOG), Microsoft (NASDAQ:MSFT), and Nokia (NYSE:NOK). Shares are currently trading near $23 after hitting a 52-week high of $70.54 in February. If the rumor turns out to be true, it would not mark Icahn’s first venture into mobile communications. On January 30, 2007, Motorola (NYSE:MMI) received notice that Icahn owned about 33.5 million shares. Icahn pushed for a seat on the board, but was turned down by the majority of the stock holders in an election for Board of Directors. On March 24, 2008, Icahn sued Motorola as part of his efforts to gain 4 seats on Motorola’s Board and force a sale of its mobile business.
Don’t Miss: Is Netflix the Next Research in Motion?