RIM shares rise amid Microsoft takeover talk

TORONTO (Reuters) - Research in Motion Ltd (RIM.TO: Quote, Profile, Research, Stock Buzz) (RIMM.O: Quote, Profile, Research, Stock Buzz) moved higher on Thursday on renewed market speculation that Microsoft Corp (MSFT.O: Quote, Profile, Research, Stock Buzz) could be interested in buying the BlackBerry maker.

"Microsoft has been mentioned as a possible buyer," said Frederic Ruffy, an analyst at options education firm Optionetics in California.

"According to speculation, the software giant might be interested in RIM in response to Google's (GOOG.O: Quote, Profile, Research, Stock Buzz) recent announcement that it is interested in making its own mobile phone operating system, which would compete with Windows Mobile," he added.

RIM shares were up 3.35 percent at $84.59 in midday trading after posting a new high of $85 on Nasdaq.

The Waterloo, Ontario-based company's shares regularly move as much as 5 percent in a single session, even in the absence of news. The Microsoft rumor has surfaced in the past, as well as speculation that Motorola (MOT.N: Quote, Profile, Research, Stock Buzz) could buy the Canadian company.

Analysts have heaped upgrades and praise on RIM in recent weeks in wake of strong growth, both in profit and in subscribers.

The company's ubiquitous BlackBerry smartphones have penetrated the professional market, but have yet to gain the same acceptance among retail consumers.

To change this, RIM has been loading up its devices with multimedia features like music players and cameras. It has also worked with carriers to make them more affordable to individuals.

The push into consumer markets could put RIM on a collision course with Apple Inc's (AAPL.O: Quote, Profile, Research, Stock Buzz) iPhone. The competition could grow stiffer still if Google launches its own device.