BlackBerry calls off sale, will replace CEO
Toronto, November 4, 2013
BlackBerry is abandoning a plan to sell itself and instead will replace its chief executive officer and raise about $1 billion from institutional investors, including its largest shareholder, the smartphone maker said on Monday.
Shares of BlackBerry dropped 16.3 percent to $6.50 in premarket trading. The company said it would raise the money with a private placement of convertible debentures.
John Chen will be appointed executive chairman and will be interim CEO while the company looks for a new leader. He is the former CEO of Sybase, a database software company that SAP AG acquired in 2010.
Chen joined private equity group Silver Lake as senior adviser last year.
BlackBerry grew from a small technology startup into a multibillion-dollar company by pioneering on-the-go email, but it has lost much of its market share to Apple's iPhone and devices that run Google's Android software.
BlackBerry's largest shareholder, Fairfax Financial Holdings Ltd, will buy $250 million of the debentures. BlackBerry said the subordinated debentures would be convertible into common shares at $10 and have a seven-year term.
Fairfax announced a tentative $9-a-share offer for Waterloo, Ontario-based BlackBerry in late September. But Reuters said on Friday that Fairfax was struggling to finance the $4.7 billion bid. -Reuters
More INTERNATIONAL NEWS Stories
- Gold hits fresh six-month highs
- Iran not open for business, affirms Kerry
- Barclays 'to cut thousands of jobs'
- Jet sent 'pings' after going missing
- China premier warns on economic slowdown
- Gunmen fire on army bus in Cairo, 1 killed
- Lost jet 'may have flown for four hours'
- Gold up as Ukraine, China prompt safe-haven bids
- Search finds no sign of lost plane at suspect spot
- Missing jet may have strayed to Andaman
- Gold hits near 6-month high
- 2 killed in Manhattan building blast
- Cameron pushes for travel bans on Russian MPs
- Indian coastguards join Malaysia jet search
- Confusion as search for lost jet spreads
- Military denies lost plane's flight to Malacca
- Investors monitoring Pimco after internal strife
- N Korea tanker ‘leaves Libya rebel port carrying oil’
- Malaysia plane incident not terror related: Interpol
- Crimea closes air space to commercial flights
- Missing Malaysian plane last seen At Malacca Strait
- Stolen passport holder on missing plane is Iranian
- China deploys 10 satellites to search for Malaysia jet
- Libya says halts tanker outside port; rebels deny it
- Libya orders military force to 'liberate' ports
- Big bananas: Chiquita, Fyffes merge
- Radar sweeps, dozens of aircraft, but no sign of plane
- N Korea tanker loads oil at Libya rebel port
- Gold drops as US growth optimism weighs
- Merkel raps Putin; Russia tightens grip on Crimea