Struggling smartphone maker BlackBerry has fired its chief executive and abandoned a
The company said it will raise
The company, which has endured a rapid fall from grace, did not say why it was trying to raise the extra money amid predictions that it will burn through its
"This does look like panic stations," said Neil Mawston, executive director at the research company Strategy Analytics. "The trouble is that when a company's in that downward spiral, nobody wants to catch a falling knife – so operators don't want to work with them, and retailers don't want the stock."
"I know we have enough ingredients to build a long-term sustainable business. I have done this before and seen the same movie before," he said. "BlackBerry is an iconic brand with enormous potential – but it's going to take time, discipline and tough decisions to reclaim our success."
BlackBerry shares plunged by 13% to
But analysts remained sceptical about the future of a company that changed its name from Research in Motion this year. "If you wouldn't lend money to buy BlackBerry, why would you lend money to BlackBerry?" queried
BlackBerry was believed to have held talks with a number of companies while Fairfax said it was working on its bid, which was announced on 23 September, just after the company had announced disastrous results with a second quarter loss of
Among the companies which BlackBerry is understood to have spoken to about a buyout are
"Looks like nobody was interested in buying BlackBerry outright," commented
Having concluded a strategic review with Monday's short statement, BlackBerry must now rely on the
The company's cash position could also be hit if suppliers begin demanding payments on shorter terms, which would mean paying cash for components before they can be sold as finished items. One major supplier, Jabil, warned in September that it might stop building parts for the company, which could kill off the handset business.
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