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BlackBerry shares climb 14 per cent following reports of a possible deal with Lenovo

BusinessNews
by ITProPortal, 12 Mar 2013News
BlackBerry shares climb 14 per cent following reports of a possible deal with Lenovo

BlackBerry shares saw a stiff 14 per cent rise earlier this week following media reports about Lenovo's plans to acquire the beleaguered smartphone manufacturer.

The speculation surrounding Lenovo's acquisition of BlackBerry has intensified after Yang Yuanqing, the China-based electronic giant's chief executive, was quoted by a French's financial newspaper as saying that a deal with the Canadian smartphone maker "could possibly make sense".

"But, first I need to analyze the market and understand what exactly the importance of this company is," Yuanqing added, according to a Bloomberg report.

Yuanqing's remarks echoed a similar statement made by the company's chief financial officer Wong Wai earlier this year. At the time, Wai told Bloomberg News that Lenovo was considering "all opportunities", including BlackBerry.

BlackBerry, which recently launched its next-generation BlackBerry 10 OS and Z10 smartphone, started reviewing its strategic options last year following a shaky performance in the worldwide smartphone market dominated by Apple and Samsung.

If the speculations prove to be true, Lenovo will have to file for regulatory approval before proceeding with the takeover plans. Existing laws make it mandatory for the Canadian government to review all overseas takeovers of companies with net assets worth over $335 million (£225 million).

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