Chinese computing firm Lenovo pondering BlackBerry takeover: report
In this May 25, 2006 file photo, a man adjusts a Lenovo display at a high-tech exhibition in Beijing, China. (AP Photo, File)
WATERLOO, Ont. -- Shares in BlackBerry rose slightly Thursday, following a report that Chinese computer maker Lenovo is looking at buying the Canadian tech company.
The Wall Street Journal reported that unnamed sources have told it that Lenovo is considering a bid for the struggling smartphone maker, and has signed a non-disclosure agreement so it can go over BlackBerry's finances.
This potential bid comes after Fairfax Financial (TSX:FFH), BlackBerry's largest shareholder, made a conditional takeover bid for the Waterloo, Ont., firm worth US$9 per share, valuing the company at US$4.7 billion.
The Fairfax consortium is expected to complete its due diligence by Nov. 4. Until then, BlackBerry is allowed to actively solicit and evaluate rival offers.
BlackBerry co-founders Mike Lazaridis and Douglas Fregin are also looking at making a potential takeover bid. Together, Lazaridis and Fregin own roughly an eight per cent stake in BlackBerry, while Fairfax holds about 10 per cent
BlackBerry has struggled this year as sales of its latest smartphones, the BlackBerry 10 models, failed to catch on. It recently reported a quarterly loss of US$965 million. The company is in the process of restructuring, in hopes of cutting its costs down by 50 per cent, and plans to eventually reduce its global workforce by 40 per cent.
BlackBerry stock closed higher by two cents to $8.44 on the Toronto Stock Exchange.