BlackBerry shares suspended as smartphone maker is put up for sale

BlackBerry has put itself up for sale in the hope a new owner might help it turn around its struggling smartphone business.  

 The Canadian company said it had formed a special board committee to examine its options.

As well as a sell-off, it will look into whether strategic partnerships or joint ventures could also help speed up adoption of its new BlackBerry 10 operating system.

It was released earlier this year alongside new devices but has made little impact in a smartphone market dominated by Apple’s iPhone and handsets based on Google’s Android software.

"Given the importance and strength of our technology, and the evolving industry and competitive landscape, we believe that now is the right time to explore strategic alternatives,” said Timothy Dattels, chairman of the special committee.

BlackBerry shares were suspended in New York ahead of the announcement, but later reopened to rise 9.4pc in pre-market trading in New York. It follows a report last week that the board were increasingly open to a private equity buyer.

 Prem Watsa, the chairman of the BlackBerry’s biggest shareholder, Fairfax Financial, resigned from the board. He said he supported the plan but potential conflicts of interest made it appropriate to step down.
Any foreign buyer of BlackBerry would face close scrutiny from the Canadian government, which views the company as a national champion and national security asset. Its devices and smartphones remain popular with governments around the world for their enhanced security features.
BlackBerry chief executive Thorsten Heins said: “We continue to see compelling long-term opportunities for BlackBerry 10, we have exceptional technology that customers are embracing, we have a strong balance sheet and we are pleased with the progress that has been made in our transition.

JP Morgan has been brought in to advise the special committee as it seeks a deal.