Because the Canadian government had made its position clear, BlackBerry never submitted any proposal to Ottawa that involved a Lenovo purchase of the company. BlackBerry operates a secure network that handles encrypted communications for the government and businesses, and there was concern that the Chinese government would be able to infiltrate the network using Lenovo as a front.
According to those inside the loop, Lenovo wanted very badly to buy BlackBerry and was prepared to pay the billions necessary to make the purchase. But BlackBerry could not afford to wait around for a security review which might have taken weeks if not months to complete, leaving the company essentially in limbo while the government decided the merits of a Lenovo buyout.
On Monday, a $9 a share, $4.7 billion bid for BlackBerry from its largest shareholder, fell apart. Instead, Fairfax Financial will buy $250 million of a $1 billion convertible debt offering that will help BlackBerry stay alive for now. As part of the negotiations involved, Thorsten Heins was removed as CEO and replaced by John Chen. But don't start up a collection for Heins just yet. Under the terms of his contract, he could be due $22 million from BlackBerry because of his departure from the company.
source: TheGlobeandMail via Crackberry