Tomahawk, WI 10/21/2013 (BasicsMedia) – BlackBerry Ltd (NASDAQ:BBRY) is looking for buyers. The company has not been doing well for quite some time, and this is not in any doubt. However, any bid placed for BBRY faces a number of challenges that could discourage even the most resolute buyers or bidders. I have read many reports that appear to indicate why national security concerns have to be taken into account when talking about bids made for BBRY. I understand why such concerns are being raised, bearing in mind the huge number of national companies that use BBRY as a daily business tool.

BBRY Attracts the Interest of Chinese Company

One of the companies to have shown interest in buying BBRY is from China, Lenovo Group Ltd. There are even reports suggesting that Lenovo has already signed a non-disclosure agreement with BBRY to look at the latter’s books before making an official bid. The Canadian government has shown a lot of interest in any deal involving BBRY, especially if this is from a foreign company or consortium. According to me, there is nothing wrong with such interest and the government is perfectly within its right to allow BBRY takeover that ensures national security.

BBRY came close to being referred to as a national institution for Canada. Its struggles on the financial front have been on news for quite some time, and are no longer a secret. BBRY can only turn its fortunes around if it is out rightly bought and is under new management. When the new operating system launched by BBRY failed to attract the sort of comeback the company’s executives wanted, it quickly became clear that its options were limited. The company quickly saw the wisdom of putting itself up for sale, and it promptly took this path in August 2013.

BBRY Has Received Interest from Several Quarters

BBRY has received a number of bids, and one of the earliest was from Fairfax Financial Holdings Ltd, which is a Canadian company, and may not be subject to similar security concerns as those that were raised with regard to foreign bidders. . I think BBRY is hopeful that it can get a much better deal than the $4.7 billion it received from its largest shareholders, Fairfax financial Holdings Ltd. I am not sure if this is possible, but there is no harm in trying now that Google and Microsoft are among companies mentioned as possible bidders or buyers of BBRY.

The Canadian government is not taking such a step for the first time. It has a record of accomplishment in terms of blocking certain bids for Canadian businesses or companies in the past, especially by foreign groups. However, time is running out for BBRY since it only has up to November 4, 2013 to receive new bids, whether officially or otherwise. The Canadian Prime Minister has already stated that the government will be keenly interested in everything that goes on in BBRY, especially if any bids come up. National security will play a big role in any bid.

My advice to anyone interested in placing a bid for BBRY, is not to disregard the Canadian government’s issues and concerns regarding national security.

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