Exclusive: Samsung makes takeover approach to BlackBerry - sources

Reuters News
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Posted: Jan 14, 2015 3:50 PM

NEW YORK (Reuters) - Smartphone company Samsung has recently approached BlackBerry Ltd to buy the company for as much as $7.5 billion, looking to gain access to its patent portfolio, according to a person familiar with the matter and documents seen by Reuters.

South Korea's Samsung proposed an initial price range of $13.35 to $15.49 per share, which represents a premium of 38 percent to 60 percent over BlackBerry's current trading price, the source said.

The offer price would imply an enterprise value of $6 billion to $7.5 billion for BlackBerry, assuming conversion of $1.25 billion of convertible debt, according to the documents.

Executives from the two companies, which are working with advisers, met last week to discuss a potential transaction, the source said, asking not to be identified because the conversations are private.

Representatives for BlackBerry declined to comment while Samsung could not be immediately reached for comment.

(Reporting by Jennifer Ablan and Liana Baker in New York, Editing by Soyoung Kim)