Business Technology

Saturday 30 August 2014

BlackBerry boss Heins ousted, sale plan abandoned

Published 04/11/2013 | 14:08

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CEO Thorsten Heins

BLACKBERRY is abandoning a plan to sell itself and instead will replace its chief executive officer and raise about $1bn from institutional investors, including its largest shareholder, the smartphone maker said today.

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Shares of BlackBerry dropped 19pc to $6.33 on the news.

The company will raise the money with a private placement of convertible debentures.

Blackberry is also replacing chief executive Thorsten Heins.

The company's largest shareholder, Fairfax Financial Holdings, will take up $250m 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 $4.7bn bid.

 

Reuters

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