FairFax To Buy Blackberry For £3bn

Struggling smartphone maker Blackberry has agreed in principle to be bought by a consortium led by Fairfax Financial for $4.7bn (£3bn).

Blackberry said in statement that Fairfax, its largest shareholder, had offered $9 a share in cash to buy the company.

Trading in Blackberry shares was temporarily halted in New York pending the announcement of an agreement.

The company said it has “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”.

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.

Blackberry’s financial problems came to a head this year following disappointing sales of its new Z10 model smartphone. On Friday, the company announced 4,500 jobs cuts in a bid to stem losses.


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