BlackBerry Ltd. had been preparing to lobby the Canadian government about issues over takeover deals by foreign companies. The move was initiated after investor concerns had increased that a domestic buyout of the struggling smartphone maker would no longer be possible.
BlackBerry had been scheduled to meet with Canadian lawmakers to talk about the Investment Canada Act. The act is responsible in setting rules for foreign buyouts of local firms, according to federal lobbying documents. The Canadian government would automatically takeover any bid that is valued more than USD322 million.
The move was amid the speculation that the biggest shareholder in BlackBerry, Fairfax Financial Holdings Ltd., had faced long odds in putting together a bid for the smartphone maker. According to a person who has knowledge about the matter, the investment firm had been in talks with Canadian pension fund managers to build a support for the deal. However, the credit-default swap trading suggested that investors were doubtful about Fairfax's effort.
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