UPDATE: Societe Generale Upgrades BlackBerry as Sell-Off Plans are Abandoned

In a report published Tuesday, Societe Generale analyst Andy Perkins upgraded the rating on BlackBerry BBRY from Sell to Hold, and reiterated the $7.00 price target. In the report, Societe Generale noted, “Blackberry announced yesterday that it has abandoned plans to sell itself to an investor consortium (which includes its largest shareholder Fairfax) for $9 per share. Instead, a consortium of investors (again including Fairfax) will invest $1bn in Blackberry in the form of convertible debentures. The investment should be completed within the next two weeks. The debentures will have a coupon of 6% and will be convertible into shares at $10 per share. The debentures have a term of seven years. Assuming all $1bn of the debentures are converted, the debenture holders would own 16% of the enlarged share capital. In addition to the financial transaction, it was also announced that the current CEO will resign as CEO from the board once the deal has closed. Peter Chen, the ex-CEO of Sybase, will join the board as the Interim CEO pending the completion of a search for a new CEO.” BlackBerry closed on Monday at $6.50.