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BlackBerry calls off sale, will replace CEO

BlackBerry Ltd Is Abandoning A Plan To Sell Itself And Instead Will Replace Its Chief Executive Officer And Raise About $1 Billion From Institutional Investors, Including Its Largest Shareholder, The Smartphone Maker Said On Monday.

Reuters | Updated on: 05 Nov 2013, 09:06:21 AM

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BlackBerry Ltd is abandoning a plan to sell itself and instead will replace its chief executive officer and raise about $1 billion from institutional investors, including its largest shareholder, the smartphone maker said on Monday.

Shares of BlackBerry dropped 19 percent to $6.33 in premarket trading. The company will raise the money with a private placement of convertible debentures.

BlackBerry's largest shareholder, Fairfax Financial Holdings Ltd, will take up $250 million of the debentures.

Fairfax announced a tentative $9-a-share offer for the Waterloo, Ontario-based company in late September. But Reuters said on Friday that Fairfax was struggling to finance the $4.7 billion bid.

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First Published : 04 Nov 2013, 07:44:00 PM

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