Canadian smartphone maker BlackBerry has formed a special committee to examine strategic options including joint ventures, strategic partnerships or a sale of the business.
In a statement the Ontario-based company said it was looking to “enhance value…
Canadian smartphone maker BlackBerry has formed a special committee to examine strategic options including joint ventures, strategic partnerships or a sale of the business.
In a statement the Ontario-based company said it was looking to “enhance value and increase scale in order to accelerate BlackBerry 10 [handset] deployment”.
Board member Timothy Dattels will head the committee, which includes CEO Thorsten Heins.
JP Morgan has been appointed as financial adviser and Skadden, Arps, Slate, Meagher & Flom and Torys are serving as legal advisers.
BlackBerry’s largest investor Prem Watsa – who holds shares via Fairfax Financial – said he has left the company’s board to due to potential conflicts of interest that could arise. Watsa added that he did not plan to sell his shares.
Explaining the timing of the review, Dattels said: “Given the importance and strength of our technology, and the evolving industry and competitive landscape, we believe that now is the right time to explore strategic alternatives.”
BlackBerry shares opened the day 5.5% up from their Friday close of US$10.30. The Nasdaq-listed manufacturer’s stock had already experienced a 5% bump at the end of last week after a newswire report suggested that executives were open to taking the company private.
BlackBerry’s stock had previously risen as high as US$17.90 in January in anticipation of a new line of smartphones. But following disappointing sales, the price fell back.
