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.
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.