Blackberry shares rise on rumors of sale - El Nuevo Herald

class=”dateline”> TORONTO, Canada – BlackBerry stocks rose on Tuesday after a report that its largest shareholder is considering the purchase of the company and speculations of what the price.

troubled cell phone company said Monday it would consider selling. The anticipated debut of their new phones this year has failed to change the fortunes of the company.

Canadian newspaper Globe and Mail, citing unidentified sources familiar with the matter, said the BlackBerry largest investor was exploring ways to form a group to acquire the company.

Prem Watsa, founder of the insurance company Fairfax Financial Holdings Ltd., is one of the best-known investors in Canada. It has 9.9% of the shares of Blackberry and will resign from the board “due to potential conflicts that may arise during the process” of a strategic review. That has raised speculation that lends itself to making a bid for BlackBerry.

“Continuous strongly supporting the company, the board and management in this process, and Fairfax Financial does not intend to sell their shares,” Watsa said in a statement issued Monday by BlackBerry. His agent did not immediately respond Tuesday to a message seeking comment.

BlackBerry launched its first portable device in 1999 and had been the dominant cell in the corporate world until Apple debuted its iPhone in 2007. Since then, BlackBerry Ltd. has been battered by competition from both the iPhone and phones with the Android operating system from Google Inc.

In January, the company unveiled a new phone with an operating system called BlackBerry 10 completely changed. But its success in the market continues to lag. IDC said last week that BlackBerry has fallen to fourth place in global sales of mobile phones, even now under Microsoft. BlackBerry also warned of future losses in June.

CIBC analyst Todd Coupland said that BlackBerry could be worth up to $ 20 per share if acquired, and large technology companies and securities firms could be interested.

Mike Walkley, analyst at Canaccord Genuity, said Tuesday that the shares rose because of the speculation. Walkley believes the company is worth $ 8 per share.

BlackBerry

shares gained 81 U.S. cents – 7.5% – up to $ 11.59 in afternoon trading. The title has fallen 9% over the year.