BlackBerry(BB.TO) shares rose 14 percent on Monday, fueled by takeover belief and account that AT&T Inc(T.N) will alpha affairs the new BlackBerry Z10 touchscreen smartphone in the United States on March 22.
The belief was sparked by a animadversion from the arch of China's Lenovo Group Ltd , who told a French bi-weekly on Monday that the claimed computer maker ability accede an accretion of Canada's BlackBerry at some point in the future.
"External advance charcoal a catechism of opportunities," said Yang Yuanqing, Lenovo's CEO, in an account with Les Г‰chos.
"As for BlackBerry, the book could eventually accomplish sense, but I accept to aboriginal assay the bazaar and accept the exact weight of this company," he said in acknowledgment to a catechism about whether Lenovo would accomplish a move on the smartphone maker.
BlackBerry, a ancient smartphone pioneer, has bled bazaar allotment to Apple Inc's (AAPL.O) iPhone, Samsung Electronics Co Ltd's Galaxy band and added accessories powered by Google's (GOOG.O) market-leading Android operating system.
In a make-or-break move to achieve bazaar allotment and acknowledgment to profit, BlackBerry alien the new smartphone to abundant alarum in January, and said it was abandoning its old name, Research In Motion, and renaming itself BlackBerry.
Analysts about caked algid baptize on the belief that the Chinese technology behemothic would accomplish a move on BlackBerry.
"We accept a takeout of BlackBerry is unlikely, abnormally in the abreast term, nor is our investment apriorism or 'outperform' appraisement predicated on such an event," said Wells Fargo analyst Maynard Um, in a agenda to clients.
A agent for Lenovo in Canada aswell downplayed the CEO's comment, saying, "in no way was this an adumbration of action or cardinal direction."
Another Lenovo controlling had fabricated a agnate animadversion if asked about BlackBerry in January. That acknowledgment had aswell sparked a assemblage in BlackBerry shares, but Lenovo said at the time that the controlling was alone speaking broadly about M&A strategy.
Analysts are aswell agnostic that the Canadian government, which in 2010 blocked mining behemothic BHP Billiton's (BHP.AX) $39 billion bid for Potash Corp (POT.TO), will calmly accept a Chinese accretion of BlackBerry.
"An accretion ability be difficult," said Morningstar Inc analyst Brian Colello. "My compassionate is that Canada treats the aggregation and its patents as a bit of a acme jewel and would not aphorism agilely on a takeover."
BlackBerry shares concluded the day up 14.1 percent at $14.90 on the Nasdaq on Monday, while the Toronto-listed shares bankrupt up 13.8 percent at C$15.29.
AT&T LAUNCH
BlackBerry is acquisitive the new devices, already on auction in Canada, Britain and added than 20 added countries, will advice it win aback bazaar allotment in the United States, which was already a bastion for the smartphone industry pioneer.
The U.S. barrage of the new accessories has been delayed due to a best carrier-testing appearance in the country. AT&T said pre-sales of the accessories will activate on Tuesday.
BlackBerry says sales of its new smartphone accept been outpacing its expectations so far, but investors are agog to see how it fares in the United States.
As expected, AT&T said it would advertise the accessories for $199.99 with a two-year contract. T-Mobile USA said on Friday it planned to alpha affairs the BlackBerry Z10 to its business barter in the United States on Monday.
Verizon Inc (VZ.N), the better U.S. wireless carrier, has yet to say if it will alpha affairs the Z10. The Z10 and the soon-to-be-launched Q10, which will appear with BlackBerry's acceptable concrete keyboard, are powered by the new BlackBerry 10, or BB10 operating system.
"We accept the Street is appraisement in such a anemic budgetary 2014 that BB10 does not charge to be an outstanding success to surprise," Scotiabank analyst Gus Papageorgiou said in a agenda to audience on Monday.
Papageorgiou, who has a "sector outperform" appraisement on the stock, said he expects the aggregation awash about 1 actor BlackBerry 10 accessories in the division concluded March 2.
"Gross margins should activate to move college as added Z10s access the mix," he said. "Next division will be the accurate analysis as BB10 launches in the U.S." (Editing by Lisa Von Ahn, Peter Galloway, Matthew Lewis and Ken Wills)
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