Toronto: Research in Motion Ltd moved higher on yesterday on renewed market assumption that Microsoft Corp could be interested in adopting the Black Berry manufacturer.

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

"According to speculation, the software giant might be interested in RIM in response to Google's recent announcement that it is interested in making its own mobile phone operating system, which would compete with Windows Mobile," Mr. Ruffy added.

RIM shares were up 3.35 percent at $84.59 in afternoon trading activity after recording 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 could buy the Canadian company.

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

The company’s all-pervading BlackBerry smart phones have penetrated the specialized market, but have yet to attain the same credence among retail users.

To modify this, RIM has been loading up its devices with multimedia traits including cameras and music players. It has also worked with carriers to make them more low-priced to consumers.

The drive into consumer markets could place RIM on a clash course with Apple Inc’s iPhone. The rivalry could develop stiffer still if Google initiates its own device.

A few option traders appeared to be betting that RIM shares’ strength could go on.

Rebecca Engmann Darst, equity options analyst at Interactive Brokers Group, said, “I've seen the rumors on RIM and there has been interest in the front-month calls, which allow investors to buy RIM shares at $80 all the way to $93.375 apiece.”

"It is RIM's standard policy to not comment on rumors or speculation," a RIM spokeswoman said in an e-mail. A Microsoft spokesperson echoed the statement.