BlackBerry shares rise on report it is gauging interest in a buyout

BUSINESS

BlackBerry shares rise on report it is gauging interest in a buyout

The Associated Press Published Monday, October 7, 2013 1:17PM EDT Last Updated Monday, October 7, 2013 2:44PM EDT

BlackBerry's employees prepare the launch event for the company's new smartphones in London on Wednesday, Jan. 30, 2013. (AP / Lefteris Pitarakis)

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Shares of BlackBerry Ltd. rose more than four per cent Monday on a report that the company is in sale talks with a handful of companies.

Reuters reported Friday that the struggling smartphone maker was holding discussions with Cisco, Google and SAP about a possible sale of all or part of itself. It cited "several sources close to the matter" that were not identified.

According to Reuters, BlackBerry has asked for preliminary expressions of interest from buyers including Intel Corp., LG and Samsung, by early next week.

BlackBerry (TSX:BB) (Nasdaq:BBRY) was up 33 cents, or 4.19 per cent, at $8.21 at midday Monday on the Toronto Stock Exchange, while the issue was up 28 cents, or 3.64 per cent, at US$7.97 in New York.

The company released a statement Monday morning declining comment on the specific report.

But Blackberry noted that its special committee along with independent financial and legal advisers "is conducting a robust and thorough review of strategic alternatives."

"We do not intend to disclose further developments with respect to the process until we approve a specific transaction or otherwise conclude the review of strategic alternatives," the statement said.

BlackBerry announced last month that Fairfax Financial Holdings Ltd. (TSX:FFH) signed a letter of intent that "contemplates" buying the company for $9 a share, or US$4.7 billion. Fairfax, BlackBerry's largest shareholder, is trying to attract other investors.

Private equity firm Cerberus has also expressed interest in buying the company.

Jefferies analyst Peter Misek backed his "hold" rating for the stock on Monday. He said that while any of the interested parties could get something out of a BlackBerry acquisition, the company has yet to generate much interest. As a result, Misek still sees Fairfax, with its $9 per share bid, as the likely winner.