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Canadian government reportedly blocks Lenovo bid for BlackBerry

Posted: , by Alan F.

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Canadian government reportedly blocks Lenovo bid for BlackBerry
A published report out of Canada on Tuesday says that Chinese tech company Lenovo was seriously considering making a bid for BlackBerry, but the Canadian government rejected the idea due to national security concerns. The Canadian government had previously been in touch with BlackBerry and told the beleaguered  manufacturer that it would not allow a Chinese firm to purchase a company involved in the infrastructure of the country's telecommunication network.

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.
"This is a company that has built its reputation and built its success on system security and its infrastructure. That’s one of the reasons businesses use BlackBerries. … The security is robust and we’d obviously have an interest in making sure we didn’t do anything or allow anything that would compromise(it)"-Anonymous Canadian official

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

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posted on 05 Nov 2013, 16:22 2

1. Doakie (Posts: 2227; Member since: 06 May 2009)

I wish I could be a CEO of a company in its death throws. These guys get fat paid.

posted on 05 Nov 2013, 16:45

2. Finalflash (Posts: 3527; Member since: 23 Jul 2013)

Yea....because the Chinese your sinking ships to hack into your pathetic security infrastructure.

posted on 05 Nov 2013, 16:50

3. apple4never (Posts: 1064; Member since: 08 May 2013)

pathetic, probably not, even the us would have done it

posted on 05 Nov 2013, 16:51

4. noler (Posts: 325; Member since: 19 Aug 2013)

By his performance, I think Thorsten Heins should pay $22 billion to BlackBerry and not vice versa.

posted on 05 Nov 2013, 16:56 1

5. wrm2013 (Posts: 209; Member since: 28 Mar 2013)

Good for them. The Chinese are buying everything. More countries should stop being sell outs

posted on 05 Nov 2013, 22:09

9. cc3493 (Posts: 158; Member since: 06 Jul 2013)

sometime people dont have a choice. If a business is seriously ailing and about to collapse, theres not much they can do if they want to keep the company alive.

posted on 05 Nov 2013, 17:46

6. cripton805 (Posts: 1485; Member since: 18 Mar 2012)

Lenovo would make awesome an awesome phone. I wish Blackberry would ditch their OS and instead use a modified more professional form of Windows OS. That would never happen. And I wouldnt get caught with a Windows phone with its current Playskool like OS in a professional setting.

posted on 05 Nov 2013, 20:48

8. kozza3 (Posts: 715; Member since: 17 Oct 2012)

its is very socially oriented...

posted on 05 Nov 2013, 18:25

7. applesucker (Posts: 81; Member since: 29 Oct 2013)

simply because the canadian government wants blackberry to be gone completely

posted on 05 Nov 2013, 22:26

10. microsoftnokiawin (Posts: 1236; Member since: 30 Mar 2012)

i think it's alot more complex then that
1. why would a government want a company in their country to die that would eat a bit of their the economy

2. this is about a country protecting it's infastructure of security and with china hacking everyone now a day why would they trust a chinese oem

3. if that was to happen they would have to rebuild their entire infastructure security once and why would they want to do that when the one they have now is working fine

posted on 06 Nov 2013, 07:04 1

11. deewinc (Posts: 392; Member since: 21 Feb 2013)

So governments are more afraid of China and its companies than PRISM ? ? ? Hilarious

posted on 07 Nov 2013, 05:50

12. microsoftnokiawin (Posts: 1236; Member since: 30 Mar 2012)

well they also probably rather prism have information then china !

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