BlackBerry's hopes of being bought out by Canadian investment firm Fairfax appear to be fading, with the company reportedly having difficultly in raising the $4.7bn it needs for the takeover.
By the time the American markets close this evening, Fairfax needs to make good on the preliminary proposal it made for the stricken manufacturer six weeks ago. However, according to Bloomberg, the company has been struggling to raise the cash it needs and has yet to name any additional members of its takeover team.
If the Fairfax deal falls through, it does not mean it is game over for Blackberry. The manufacturer's co-founders Mike Lazaridis and Doug Fregin have teamed up with chip maker Qualcomm to make a bid with the Cereberus investment firm. The consortium could take advantage of a likely plummet in BlackBerry's share price, if the Fairfax deal does not come through.
The bid was first made after Blackberry said it was effectively putting itself up for sale in August. Fairfax, the company's largest shareholder, became the frontrunner to take control of the business. Several weeks later, BlackBerry announced it had lost almost $1bn, largely due to write-offs of unsold BlackBerry Z10 stock.
Author: Graeme Neill