Research in Motion Ltd. (NASDAQ: RIMM) -- volatility up prior to unconfirmed Microsoft Corp. (NASDAQ: MSFT) buyout chatter. RIMM is recently trading up $1.33 cents to $83.11 on unconfirmed speculation MSFT is considering the purchase of RIMM on rumor of Google Inc. (NASDAQ: GOOG) introducing GPhone. RIMM has a market cap of $45 billion. MSFT has a market cap of $267 billion. RIMM is expected to report EPS on October 4. RIMM September option implied volatility of 47 is above its 26-week average of 42 according to Track Data, suggesting larger risk.
Tellabs Inc. (NASDAQ: TLAB) -- volatility elevated into renewed report of Nortel Networks (NYSE: NT) interest in TLAB assets . TLAB, a designer and marketer of equipment to providers of telecommunications services, is recently up $0.45 to $10.70. Light Reading reported NT has emerged as the most recent suitor for TLAB. Nortel, Motorola Inc. (NYSE: MOT) and Nokia Corp. (NYSE: NOK) have been frequently mentioned as possible buyers of TLAB over the last five years. TLAB over all option implied volatility of 42 is above its 26-week average of 37 according to Track Data, indicating larger price risk.
Daily M&A update is provided by Stock Specialist Paul Foster of theflyonthewall.com.
