The planned purchase of BlackBerry by a consortium

BlackBerry via a $1 billion private placement of convertible debentures, said BlackBerry in a news release. The transaction is expected to be completed within the next two weeks, it said. Under the previously announced $4.7 billion purchase plan, BlackBerry shareholders would have received $9 a share in cash from the consortium, which would have then taken BlackBerry private. A consortium including Qualcomm was planning to make an alternative bid for BlackBerry, according to published reports prior to BlackBerry’s Monday announcement. BlackBerry and Qualcomm declined to comment. After the closing of the $1 billion investment, Thorsten Heins will step down as BlackBerry CEO, and he and David Kerr will resign from its board, said BlackBerry. John Chen will become executive chairman of BlackBerry’s board and be interim CEO until a replacement is found; Fairfax Chairman Prem Watsa will become lead BlackBerry director and chairman of its Compensation, Nomination and Governance Committee, said BlackBerry. The appointment of ex-Sybase CEO Chen as BlackBerry interim CEO and chairman suggests that Fairfax sees BlackBerry’s “future in software rather than devices,” said Ovum analyst Jan Dawson. That “makes sense in light of BlackBerry’s sputtering device shipments over the past few months, but it’s still not clear where that growth will come from,” he said. The planned investment “marks the conclusion of the review of strategic alternatives” that BlackBerry announced Aug. 12, BlackBerry said Monday. BlackBerry’s board “conducted a thorough review of strategic alternatives and pursued the course of action that it concluded is in the best interests” of the company and shareholders, it said. The financing provides an “immediate cash injection on terms favorable to BlackBerry, enhancing our substantial cash position,” it said. BlackBerry shares closed 16.4 percent lower Monday at $6.50.