Blackberry and Samsung deny ‘groundless’ rumours of $7.5bn takeover

Blackberry and Samsung have both denied rumours that the South Korean firm is in talks to acquire the ailing smartphone brand.

According to documents seen by Reuters, Samsung offered to purchase Blackberry for $7.5 billion (£5 billion).

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With Samsung dismissing the reports as “groundless,” Blackberry has also issued a statement refuting suggestions of a takeover.

"BlackBerry is aware of certain press reports published today with respect to a possible offer by Samsung to purchase BlackBerry,” a statement read. “BlackBerry has not engaged in discussions with Samsung with respect to any possible offer to purchase BlackBerry. BlackBerry's policy is not to comment on rumours or speculation, and accordingly it does not intend to comment further."

Although it lead the smartphone market at one point, Blackberry now accounts for less than one per cent of the global market. Despite efforts to improve the company’s fortunes through the launch of new devices like the Blackberry Passport, sales figures continue to disappoint. A takeover may have the potential to improve the firm’s position and Blackberry shares rose 29 per cent after reports of Samsung’s interest emerged.

Reuters reports that Samsung had offered Blackberry an attractive deal and were willing to pay between 38 and 60 per cent more per share than the current trading price.

While many of the reports have focused on the benefits that the proposed takeover would bring to Blackberry, Samsung might also receive some much-needed impetus from the deal. The South Korean company has experienced slowed growth and troubling financial results throughout 2014 as it struggles to compete against lower cost smartphone firms such as Karbonn and Xiaomi.

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If Samsung can acquire Blackberry and help it to win back the business users that once made up its core market, it could prove a valuable addition to its smartphone range.