Certicom Corp. (TSX: T.CIC, Stock Forum) announced late Monday night that the Ontario Superior Court of Justice has granted a permanent injunction restraining the $1.50 hostile take-over bid made on December 10, by a wholly-owned subsidiary of Research in Motion (TSX: T.RIM, Stock Forum) from proceeding.
The company says the injunction was granted by the court following an application by Certicom on the basis that RIM and its subsidiary “had breached non-disclosure agreements entered into by Certicom and RIM in 2007 and 2008 by using confidential and proprietary information supplied by Certicom to RIM for its bid.”
“This decision will effectively require RIM to withdraw its bid. If RIM wishes to proceed with a subsequent offer, it may do so in compliance with its non-disclosure agreements with Certicom, or with Certicom's consent,” says the company.
Following a review involving Certicom’s special committee of independent directors and its financial and legal advisors, the company’s board of directors reportedly “found the RIM offer to be undervalued and not in the best interests of Certicom shareholders.” The company says its board is “continuing to conduct a value maximization process that is designed to facilitate the proposal of superior alternatives from qualified third parties.”
On the Certicom Bullboard Tuesday, fishtail said: “unless there are other suitors in the waiting, i think the price will fall slightly, unless RIM ups its offer fairly soon. this is getting interesting[sic].”
Shares of Certicom fell 5.6% to $1.70 Tuesday.
