VeriSign won't top RIM bid for Certicom

Encryption technology company Certicom Corp. said Tuesday it has been told that VeriSign Inc. will not boost its takeover bid for the company to top a rival offer from Research in Motion Ltd.

VeriSign's decision puts RIM one step closer to acquiring Certicom, which is one of its suppliers.

Certicom's board of directors will meet later today, when it is expected to approve the RIM offer. If that happens, Certicom will be in a position to negotiate an agreement with RIM after Certicom has made a $4-million termination fee to VeriSign.

On Feb. 3, RIM unveiled a bid for Certicom of $3 a share in cash, topping a friendly bid from California-based VeriSign. VeriSign's offer was for $2.10 a share.

After agreeing to VeriSign's friendly offer, Certicom then threw its support behind the RIM bid.

An earlier attempt by RIM to acquire Certicom for $1.50 a share hit a brick wall on Jan. 19, when an Ontario court judge granted a permanent injunction blocking RIM's bid. Certicom argued that RIM had used privileged information to draw up its hostile takeover bid.

RIM, which is based in Waterloo, Ont., dropped its offer on Jan. 20. Three days later, Certicom and VeriSign reached their friendly takeover deal.