Rumors Circulate as Lenovo Signs NDA to See Blackberry's Financials
Rumors continue to circulate around the Canadian smartphone company Blackberry (NASDAQ: BBRY).
Today, Lenovo Group Limited is rumored to be actively considering a bid for the Blackberry entity. Although Lenovo has not made a formal announcement regarding a nondisclosure agreement and spokesmen from both smartphone makers did not comment on the development, Lenovo signed a NDA to gain access to Blackberry's financials.
If this foreign deal goes through, it would face government scrutiny in North America and be one of the largest acquisitions of Western Company by a Chinese company. A bid exceeding $344M (CDN) must pass a government review to analyze security risk and must generate an economic benefit. Blackberry smartphones continue to be used by the U.S. government including the Defense Department. Last week, Canada rejected a bid from Egyptian telecom entrepreneur Naguib Sawiris to buy a division of Manitoba Telecom Services Inc. with concerns over national security.
Previous potential bids for Blackberry include Cerberus Capital Management LP, Fairfax Financial Holdings Ltd, Cisco (NASDAQ: CSCO), Google (NASDAQ: GOOG) and SAP (NYSE: SAP). A potential takeover by Blackberry co-founders Mike Lazaridis and Douglas Fregin was announced on October 10.
Blackberry closed at 8.20 on Thursday.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.