According to the Globe and Mail, BlackBerry is abandoning the deal with Fairfax Financial and will instead look to raise $1-billion of new funds in order to replace current CEO Thorsten Heins as well as some directors. That is according to what they are saying and full report to come, in time. Certainly good news but until the mess is cleaned up, hey, let’s keep this as a speculation.
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The new plan will involve raising roughly $1-billion by selling convertible notes to a group of investors, according to people familiar with the transaction. Chief executive officer Thorsten Heins will depart the company, and the company will announce changes to its board, the people said.
Mr. Heins was named to the top job early last year, taking over from Mike Lazaridis and Jim Balsillie, who had run the company since its earliest days.
Mr. Heins’ short tenure was marked by the rocky launch of BlackBerry’s new phone lineup. The new phones met tepid demand, and BlackBerry made the decision to officially put itself up for sale in August.
Fairfax had offered $9 a share in its tentative letter of intent, and was working to pull together a group of backers. The market was skeptical that Fairfax would be successful, and BlackBerry shares have been trading well below that price.
The process also attracted interest from various sources, including a potential group bid from private-equity firm Cerberus Capital Management, Mr. Lazaridis and chipmaker Qualcomm Inc.
More to come
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Via Globeandthemail
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