Blackberry at centre of bidding war between its co-founders and largest shareholder
Nikhil Kumar is The Independent's New York correspondent. He was formerly assistant editor on the foreign desk and has also done a variety of jobs on the city desk, where he wrote about markets, commodities and other business and economics topics.
Thursday 10 October 2013
Blackberry, the struggling smartphone maker that last month agreed to sell itself to a group of buyers led by its largest shareholder, could find itself at the centre of a bidding war after the company's co-founders said they were considering buying the business.
Mike Lazaridis and Douglas Fregin disclosed that they were considering a possible joint bid in a securities filing on Thursday showing that they had raised their stake in the business to 8 per cent. Such a move would put them in competition with Fairfax Financial, the company's largest shareholder with a stake of around 10 per cent, which is leading the consortium of buyers that last month tabled a $4.7bn offer to take the business private.
The Fairfax bid came to light just days after company, which was once worth more than $80bn, warned the stock market that it was running up a massive quarterly loss of almost $1bn and preparing to lay off over a third of its global workforce.
The agreement between Blackberry and Fairfax allowed the company to solicit other possible buyers while Fairfax, a giant insurance and financial services conglomerate, conducted due diligence.
The two developments - the go-private offer from Fairfax and the potential bid by its co-founders - illustrate just how far Blackberry has fallen in recent years, as it struggled to compete with the likes of Apple and Samsung.
According to IDC, a research firm, smartphones phones running on Blackberry's operating system (OS) are forecast to have a worldwide market share of 2.7 per cent this year, against 75.3 per cent for those running Google's Android system, which used by Samsung's phones.
Apple's iOS operating system, which powers the iPhone, has a nearly 17 per cent share. Compare this to the picture in 2009, when Blackberry had more than 20 per cent of the market.
- 1 Is Gideon Levy the most hated man in Israel or just the most heroic?
- 2 Students offered grants if they tweet pro-Israeli propaganda
- 3 Exclusive: Cameron’s Big Society in tatters as charity watchdog launches investigation into claims of Government funding misuse
- 4 Satellite full of sexually experimental geckos adrift in space, Russia loses control of mission
MH17 crash: Investigators discover more human remains and 'huge section of plane'
Susan Sarandon on David Bowie romance: 'He's worth idolising'
Students offered grants if they tweet pro-Israeli propaganda
A day in the life of Vladimir Putin: The dictator in his labyrinth
Exclusive: Cameron’s Big Society in tatters as charity watchdog launches investigation into claims of Government funding misuse
The 'scroungers’ fight back: The welfare claimants battling to alter stereotypes
Arizona execution lasts two hours as killer Joseph Wood left 'snorting and gasping' for air
Malaysia Airlines MH17 crash: Ukrainian military jet was flying close to passenger plane before it was shot down, says Russian officer
Malaysia Airlines MH17 crash: Massive rise in sale of British arms to Russia
Malaysia Airlines MH17 crash: victims’ bodies bundled in black bags and loaded onto trains
John Barrowman praised for Commonwealth Games opening ceremony gay kiss
iJobs Money & Business
£600 - £650 per day: Orgtel: Conduct Risk Liaison Manager - Banking - London -...
£18000 - £23000 per annum + Comission: SThree: SThree, International Recruitme...
£280 - £300 per day + competitive: Orgtel: Test Analyst, Edinburgh, Credit Ris...
£20000 - £25000 per annum + OTE £40,000: SThree: SThree Group have been well e...