Would-be buyers of BlackBerry are hitting problems raising finance for the acquisition, with investors concerned the smartphone maker is unlikely to improve its performance.
All interested parties have until the end of today (4 November) to table their offers, however bids are being held back by a lack of support from major banks and financial institutions.
One of the primary bidders, Fairfax Financial Holdings, is struggling to attract backing for a $4.7 billion bid for BlackBerry, Reuters reports. The firm, which holds a 10% stake in the smartphone maker, does have the support of Bank of America Merrill Lynch and BMO Capital Markets, prompting speculation those two may fund the acquisition directly.
Meanwhile, a potential rival offer by Cerberus Capital Management and BlackBerry co-founder Mike Lazaridis, also looks to be hitting problems, with the duo appealing to chip maker Qualcomm to join their bid for the smartphone maker.
Qualcomm is currently evaluating BlackBerry’s finances, Bloomberg reports.