Cisco Systems, Google and SAP are in talks with loss-making BlackBerry to buy either the whole of the business or particular divisions, Reuters reported citing several sources close to the matter.
The potential buyers are said to be interested in…
Cisco Systems, Google and SAP are in talks with loss-making BlackBerry to buy either the whole of the business or particular divisions, Reuters reported citing several sources close to the matter.
The potential buyers are said to be interested in BlackBerry’s patent portfolio and secure server network, but there are questions over the value of the assets.
BlackBerry is looking to receive preliminary expressions of interest from prospective strategic buyers early this week, the report said.
BlackBerry and SAP declined to comment while Google and Cisco did not reply to requests for comment before the press deadline.
Any bid would rival a letter of intent the Canadian smartphone manufacturer signed with Fairfax Financial Holdings, which would see the Canadian investment firm take the company private for US$4.7bn.
Following the Reuters report BlackBerry’s share price has risen by more than 5% in pre-market trading, to beyond the US$8 mark. Yet this is still below Fairfax’s US$9 per share offer.
Fairfax is currently conducting due diligence and during that process BlackBerry is free to talk to other potential bidders. However, should BlackBerry then decide to go with a different offer and pass on Fairfax’s bid it would be required to pay the firm a US$157m break-up fee.
Last week Cerberus Capital, which is an investor in distressed assets, was reported to be looking to sign a confidentiality agreement so it could access BlackBerry’s books.
Another distressed investor is also reported to be sniffing around the technology company.
In August BlackBerry decided to form a special committee to examine strategic options, including a sale. JP Morgan and Perella Weinberg are advising on the process.
