Will There Be Regulatory Hurdles For Succesful Bidder Of BlackBerry Ltd (NASDAQ:BBRY)

Posted by Lynn Eisler October 21, 2013 0 Comment 926 views

Recently Lenovo Group Limited (ADR) (OTCMKTS:LNVGY), a Chinese computer and smartphone maker signed a Non-Disclosure deal with BlackBerry Ltd. (NASDAQ:BBRY)’s for due diligence of accounts. A source familiar with the matter reported the likelihood of Lenovo bidding just for parts of BlackBerry amidst the speculation of regulatory obstacles if it bids for all of the company.

Earlier this August, BlackBerry Ltd had reported that it was exploring opportunities and potential options for the outright sale. Since then this smartphones pioneer has been linked with potential buyers that also includes peers from technology industry. Sources close to the matter have reported about BlackBerry’s ongoing talks with Cisco Systems, Inc.(NASDAQ:CSCO) and Google Inc. (NASDAQ:GOOG) among others, about selling all or part of itself. However there are no comments from either side on such potential talks and even none of these companies have made any formal bid as of date. However, industry experts are of opinion that while these rival technology firms may not be pursuing to take over all of BlackBerry, they could be eyeing at least some specific segments of BlackBerry that can match well with or help expand their own business.

The experts following the matter, believes that the BlackBerry’s handset business could be sold out to an Asian device maker. While its secure network which handles large numbers of confidential government and corporate emails each day, is supposedly BlackBerry’s most vital asset and many of security experts believe it to be sold out only to a North American buyer in light of crucial security concerns. The remaining hardware and network assets of BlackBerry are believed to be bought out by some of the strategic technology peers, depending on their level of interest.

Even the Canadian Prime Minister, Stephen Harper mentioned that Blackberry shall consider its potential takeover with due diligence to national security concerns and Canada would be closely examining those issues in case of any foreign bid for BlackBerry.

About Lynn Eisler

Lynn Eisler is a national news reporter focusing on economic issues, data analysis and the financial health of state and local governments. Lynn has been honored with the H.L. Mencken Award for Investigative Reporting, the Champion of Justice Award for reporting on the drug war, and the John Hancock Award for business reporting. Lynn was also a Knight Medical School Fellow at the University of Michigan.

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