Market Overview

Rumors Continue To Circulate On BlackBerry; Latest Says Lenovo Signed NDA To See Books


A report from USA Today on Thursday suggested Lenovo Group Limited is rumored to be actively considering a bid for BlackBerry BBRY. The report said Lenovo signed a a non-disclosure deal with the embattled company.

Spokespersons from Lenovo and BlackBerry would not comment on the development.

If such a deal were to happen, an off would face government scrutiny in North America and be one of the largest acquisitions of a western company by a Chinese company. A bid exceeding C$344 million must pass a government review to analyze security risk and must generate an economic benefit.

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 10th.

Last week, Canadian regulators rejected a bid from Egyptian telecom entrepreneur Naguib Sawiris to buy a division of Manitoba Telecom Services Inc. with concerns over national security.

Shares of BlackBerry initially spiked on the news, jumping as much as 4 percent to a session high of $8.45. By the end of the day, however, BlackBerry shares had given up most of those gains. The stock closed at $8.20.

Posted-In: News Rumors M&A Movers


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