BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) may not receive any special support from the Canadian government to revive its sagging fortunes, and this fact became clearer after Minister of Industry James Moore said that the Canadian firm will have to organize its turnaround plan by itself, says a report from Bloomberg.
“This is a Canadian company with a long track record of stirring up innovation and important changes in the products we all use,” Moore said in an interview in his Ottawa office.
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Pressure rising on Harper’s government
The minister said that BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) employs a large number of Canadian citizens and has been a source of Canadian pride. Moore also added that BlackBerry is sailing through troubled waters with its brand new series of smartphones. According to Moore, the new gadgets from BlackBerry did not perform in line with the company’s expectations, and the company should make a move to give some new features, platforms and services to consumers to allure them.
BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) stocks have declined 9 percent this year, raising concerns over Prime Minister Stephen Harper’s government who earlier took actions to safeguard troubled companies.
Heins refuses ‘selling’ as an option
BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) shares share shot up on August 12th after it announced a board committee to look into a potential sale, or joint ventures and partnerships.
The announcement was a confirmation of BlackBerry’s action last year of hiring JPMorgan Chase & Co (NYSE:JPM) and RBC Capital Markets to assist the company with strategic moves. Thorsten Heins said at that time that selling the company was not the “main direction” right now.
Parties interested in acquiring BlackBerry
BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB)’s largest shareholder, Toronto businessman Prem Watsa, stated on August 12 that he will exit the company’s board, which raises speculation that he will play a vital role in reviving the company.
According to data gathered by Bloomberg, BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) is the largest publicly traded corporate spender in the country on research and development. A sale can protect BlackBerry from succumbing to a similar fate as that of Nortel Networks corp., which was once North America’s largest telephone equipment maker, yet filed for bankruptcy in 2009.
There are many foreign companies exhibiting interest in acquiring BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) at this time, Lenovo Group Limited (OTCMKTS:LNVGY) (HKG:0992) being one of them. However, Lenovo, a Chinese firm, may face a snag due to security issues as BlackBerry devices are used by many government agencies.