| | [2005-08-22] Report: Intel, RIM ink deal
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Maker of the BlackBerry device agrees to joint development deal with chipmaker, according to CNBC.
SAN FRANCISCO (Reuters) - Research in Motion, makers of the BlackBerry e-mail pager, has agreed to a joint development deal with the world's largest chipmaker, Intel Corp., CNBC television said Monday, pushing RIM shares up 6 percent.
In late afternoon trading, shares of Canada's Research in Motion were up 5.26 percent to C$93.85 on the Toronto Stock Exchange. Intel (Research) shares were up 41 cents, or 1.6 percent, to $26.06.
CNBC reported that Research in Motion had agreed to supply battery-saving technology it owns to Intel for use in an Intel chipset. In return, Intel has agreed to supply Research in Motion with chips for use in unspecified products, CNBC said.
Spokesmen for both companies were not immediately available for comment.
"Rumors have it that RIM will announce a deal with Intel to use their chips," Sean Flynn, options trader at Timber Hill, a unit of Interactive Brokers, told Reuters.
"Options volume is heavy with the bias on upside call buying," he said.
Another analyst said the two companies were expected to announce a deal this week at the Intel Developer Forum, the company's annual conference for computer hardware developers.
"We are expecting some positive news out of an Intel Developer Forum being held this week in San Francisco, which might involve RIM," said Paul Foster, an options strategist at financial-information Web site theflyonthewall.com.
Late Monday, a combined total of 41,815 calls and 30,306 puts on Research in Motion traded in the U.S. options market, outpacing its average daily volume of 36,001 contracts, according to market research firm Track Data.