Lenovo emerges as BlackBerry buyer
Chinese computer firm reportedly examining books
TORONTO — A familiar suitor has re-emerged as a potential bidder for BlackBerry Ltd., adding another voice to a growing chorus of prospective buyers who are mulling an offer to acquire some or all of the embattled Canadian smartphone maker.
Chinese computer manufacturer Lenovo Group Ltd. has reportedly signed a non-disclosure agreement with BlackBerry to get a deeper look inside the Waterloo, Ont.-based company’s books, according to a report from the Wall Street Journal.
Lenovo, the world’s largest personal computer manufacturer, has expressed interest in acquiring all or part of BlackBerry in the past, and in this case is reportedly considering acquiring the whole company.
For BlackBerry, Lenovo represents the latest in a growing queue of potential suitors rumoured to be kicking the tires of the struggling technology company.
Still, any bid from Lenovo would likely face close scrutiny from the Canadian government, which reviews foreign takeovers to determine whether the deal is a “net benefit” for Canada and doesn’t pose a threat to national security.
BlackBerry chief executive Thorsten Heins effectively put the struggling technology firm up for sale in late August by announcing the company’s board would begin examining “strategic alternatives,” following several years of shrinking profits and falling market share in the face of overwhelming competition from Apple Inc.’ s iPhone and devices running Google Inc.’ s Android software.
Although BlackBerry agreed to a tentative $4.7-billion US sale to a consortium of investors led by Fairfax Financial Holdings Ltd. in late September, other potential bidders — most notably Research In Motion co-founders Mike Lazaridis and Doug Fregin — have emerged.
Shares of BlackBerry closed at $8.20 US, up seven cents on the Nasdaq Stock Exchange in New York.
In March, shares of BlackBerry spiked after Lenovo chief executive Yang Yuanqing was quoted by a French financial newspaper as saying the Chinese computer manufacturer might consider buying BlackBerry to expand its mobile offerings.
At the time, Yuanqing told Les Echos that a deal with BlackBerry “could possibly make sense, but first I need to analyze the market and understand what exactly the importance of this company is.”
On Thursday, Bloomberg reported that Lenovo’s senior leaders are feeling hesitant about pulling the trigger on major acquisitions, amid worries about overpaying.
“We will not buy for the sake of buying,” Wong Wai Ming, chief financial officer told Bloomberg.
“Even when an opportunity, on the face of it, makes perfect sense for us to do it, it may not happen.”
However, any deal from a Chinese manufacturer to take over BlackBerry would likely face scrutiny from the federal government.
Federal Finance Minister Jim Flaherty has said Canada would “look carefully” at a foreign takeover of BlackBerry, and that there are “absolutely” some Canadian technologies that would be off limits to foreign buyers. The Harper government has shown it is willing to block foreign takeovers in certain instances, notably in the case of Potash Corp.