Certicom opts for a cease trade order, RIM ‘disappointed’

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CerticomThe RIM/Certicom takeover is starting to get messy. After urging their shareholders to take no action towards RIM’s hostile takeover of the encryption software company, Certicom intends to apply to the Ontario Superior Court of Justice and the Ontario Securities Commission for an injunction and cease trade order, respectively, preventing RIM from acquiring Certicom shares under RIM’s original offer of CDN $1.50 per share. Here’s what RIM had to say publicly in response:

While this course of conduct is consistent with Certicom’s past conduct in rebuffing RIM’s overtures to conclude a negotiated transaction with Certicom, RIM is disappointed that Certicom’s directors are again attempting to keep the decision as to whether to accept RIM’s offer out of Certicom shareholders’ hands.

RIM understands that the basis of the injunction and cease trade applications is Certicom’s allegation that RIM used confidential information contrary to the terms of agreements entered into between RIM and Certicom, and an alleged related failure by RIM to make proper disclosure in its offer to purchase and circular sent to Certicom’s shareholders. RIM intends to vigorously oppose Certicom’s allegations.

RIM also said they plan to bring an application to the Ontario Securities Commission to cease trade Certicom’s shareholder rights plan. Can’t RIM and Certicom just get into the holiday spirit and work things out?

|via Reuters|