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BlackBerry jumps after report says Samsung analyzed takeover

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BlackBerry jumps after report says Samsung analyzed takeover
An investment bank hired by Samsung prepared a detailed analysis of a potential acquisition of all or part of BlackBerry (BBRY) by the South Korean company, The Financial Post reported. WHAT'S NEW: In the fourth quarter of last year, Evercore Partners produced a 40 page analysis of the advantages and disadvantages to Samsung of acquiring all or part of BlackBerry, according to The Financial Post. The document also laid out various strategies that Samsung could use to make such a deal, and obstacles that could prevent the deal from occurring, the newspaper stated. Acquiring a minority stake would have many advantages for Samsung, the newspaper quotes the document as saying. However, it questions whether Samsung could achieve its key objectives if it only holds a minority stake in BlackBerry. The Canadian company's software appears to be complementary to that of Samsung, but further analysis must be conducted on that issue, Evercore stated, according to The Financial Post. The document suggested that Evercore could ask Fairfax Financial (FRFHF), a major BlackBerry shareholder, to help facilitate a deal. WHAT'S NOTABLE: After attending meetings with BlackBerry CFO James Yersh, Wells Fargo estimated that BlackBerry's QNX subsidiary, which develops software for automobiles, is already generating about 40% of the $500M of total annual software revenue that BlackBerry has targeted. Many analysts have questioned whether BlackBerry could meet this target. The firm also stated that BlackBerry will unveil "an iconic device" in early March. However, Yersh acknowledged that Q4 would be a transition quarter, while many investors remain cautious about BlackBerry, Wells stated. The firm has a neutral rating on the shares. PRICE ACTION: In mid-morning trading, BlackBerry surged 8.5% to $10.80

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