Blackberry has agreed to be bought by a consortium led by Fairfax
Financial for $4.7bn (£3bn). Blackberry said in statement that Fairfax, its largest shareholder
with about 10% of the stock, had offered $9 a share in cash to buy the company.
Trading in Blackberry shares was temporarily halted
in New York pending the announcement. On Friday, Blackberry announced 4,500
jobs cuts in a bid to stem losses. The Canadian company said it expected to
make a loss of up to $1bn after poor sales of its new handsets. In August,
Blackberry said it was evaluating a possible sale.
On Friday, the company announced that it had
"signed a letter of intent agreement under which a consortium to be led by
Fairfax Financial Holdings Limited has offered to acquire the company subject
to due diligence".
The statement continued: "Diligence is expected to be complete by
November 4, 2013. The parties' intention is to negotiate and execute a
definitive transaction agreement by such date." However, Blackberry said
it was not in exclusive talks with Fairfax and would continue to "actively
solicit, receive, evaluate and potentially enter into negotiations" with
other potential buyers. Canadian billionaire Prem Watsa, Fairfax's chairman and
chief executive, said: "We believe this transaction will open an exciting
new private chapter for Blackberry, its customers, carriers and employees.
"We can deliver immediate value to
shareholders, while we continue the execution of a long-term strategy in a
private company with a focus on delivering superior and secure enterprise
solutions to Blackberry customers around the world."
Source: BBC
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