Samsung Electronics recently offered to buy BlackBerry for as much as $7.5 billion, seeking its valuable patents as it battles Apple in the corporate market, according to a person familiar with the matter and documents seen by Reuters.
South
Korea’s Samsung proposed an initial price range of $13.35 to $15.49 per share,
representing a premium of 38 percent to 60 percent over BlackBerry’s current
trading price, the source said on 14th January.
Representatives from the two companies,
which are working with advisers, met last week to discuss a potential transaction,
the source said, asking not to be identified because the conversations were
private
The Waterloo, Ontario-based
company said in a statement, “It had not engaged in discussions with Samsung
with respect to any possible offer to purchase BlackBerry.”
Shares of BlackBerry, which soared nearly 30 per cent following the Reuters report, fell back about 15 per cent in after hours electronic trading following the statement.
Samsung also told Reuters in Seoul that it has no plans to acquire Blackberry. “Media reports of the acquisition are groundless,” a company spokeswoman said.
Shares of BlackBerry, which soared nearly 30 per cent following the Reuters report, fell back about 15 per cent in after hours electronic trading following the statement.
Samsung also told Reuters in Seoul that it has no plans to acquire Blackberry. “Media reports of the acquisition are groundless,” a company spokeswoman said.
On
14th January, 2015, Canadian
newspaper Globe and Mail reported BlackBerry has shunned a handful of takeover
overtures in recent months as its board and largest investor think its restricting
strategy will deliver greater shareholder value than current acquisition
offers.
The
board believes offering prices, some in excess of $7 billion, fall well below
BlackBerry’s potential asset value in the next few years, according to the
Globe and Mail report.
BlackBerry,
a one-time investor darling that pioneered smartphones has regained some of its
lost swagger under chief executive John Chen, who is leading a bid to regain
market share it has lost to Apple Inc, Google Inc and Samsung.
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