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Samsung Approached BlackBerry With A $7.5 Billion

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SAMSUNG has approached BlackBerry about buying the company for as much as $7.5 billion.

The Korean giant hoped to gain access to its patent portfolio, according to a person familiar with the matter and documents seen by Reuters.

The move could mean that BlackBerry’s poorly performing handsets could be scrapped or integrated into Samsung’s Galaxy line.

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.

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.

Shares of Blackberry jumped as much as 30 percent on heavy volume in afternoon trading in New York.

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. – Reuters

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