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Blackberry sale bid fails

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Smartphone maker Blackberry has abandoned plans to find a buyer after the $4.7 billion deal with investment firm, Fairfax Financial Holdings failed.

Reuters reports that Fairfax was unable to raise the necessary funds, and instead will be part of a new $1 billion investment into Blackberry.

In addition, Blackberry’s chief executive, Thorsten Heins, will be leaving the company after two years in the role. His place will be taken by Former software executive John Chen who will be installed as interim chief executive of the Canada-based firm.

The plan to sell the company followed a two-month review of strategic options. There were talks with potential buyers, including Facebook, Lenovo and private equity firms such as Cerberus. However, the only formal offer was the offer from Fairfax.

As part of the new agreement, Fairfax and other investors will invest $1 billion in "convertible debentures" in BlackBerry. Fairfax will contribute $250 million of this. 

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