Investment leader reveals shortfalls behind potential Blackberry bids

by Andrew Roach on November 25, 2013

Over the past couple of months, Blackberry has been desperately searching for a buyer however none of the bids put on the table never materialised into a formal buyout.

Initially, it was unclear as to why none of the bids for the firm were successful however a leading figure from one of
Canada’s largest investment companies has revealed that they felt none of the bids would have enough to save Blackberry from going under.

The comments made by Alberta Investment Management Corp (AIMCO) CEO Leon De Bever highlighted that all of the options presented to potential investors only delayed the demise of the smartphone manufacturer for a short while.

During the takeover auction, only Fairfax Financial placed a formal bid for the company although interest had also been shown by Lenovo, the company’s founder and American investment firm Cerberus.

In his statement, De Bever has made it clear that Blackberry’s potential savers had been busy negotiating with all of the major national investment firms during the past few months.

However, none of those presented an option which would be able to turn around Blackberry’s huge financial losses and help turn back into a major player on the smartphone market.

This lack of direction was ultimately what stopped from De Bever and AIMCo from investing and backing any of the potential bids for the Waterloo-based firm. This was highlighted in comments made to The Globe and Mail where he stated: “You had six or seven entities darting in and out with various propositions. But there was never a unified business plan to say ‘Okay, this is what we need to do”

With the company failing to find a backer, Blackberry abandoned plans to move away from going private and instead raised $1billion with help from several major partners including Fairfax Financial, Canso Investment and Qatar Holdings.

There was also a change at the top of the company which has seen many senior figureheads replaced as the company hope that a new set of minds will be able to save the firm from disappearing from the telecom world once and for all.

As De Bever’s comments reveal just how bad things are for Blackberry at the moment, it will provoke even more thoughts as to what will be needed to stop the iconic smartphone manufacturer from fading away from the world once and for all.

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