For its part Fairfax, already the smartphone makers’ largest shareholder has offered $9 a share in cash to buy the company, making the deal worth some $4.7 billion.
While Blackberry retains the right to continue exploring other options while negotiations continue it released a statement late on Monday announcing that it had, “signed a letter of intent agreement under which a consortium to be led by Fairfax Financial Holdings Limited has offered to acquire the company subject to due diligence. Diligence is expected to be complete by November 4, 2013. The parties' intention is to negotiate and execute a definitive transaction agreement by such date."
Canadian billionaire Prem Watsa, Fairfax's chairman and chief executive, said: "We believe this transaction will open an exciting new private chapter for Blackberry, its customers, carriers and employees. We can deliver immediate value to shareholders, while we continue the execution of a long-term strategy in a private company with a focus on delivering superior and secure enterprise solutions to Blackberry customers around the world."
Many analysts believe that such a deal with Fairfax will give Blackberry greater breathing space to assess its strategic options, which may include a retrenchment to the business market.
