Cisco, google, sap discussing blackberry bids: sources

Cisco, google, sap discussing blackberry bids: sources

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Getty Images BlackBerry Ltd, on the block as its smartphone business struggles, is in talks with Cisco Systems, Google Inc and SAP about selling them all or parts of itself, several sources


close to the matter said. Such a deal would be an alternative to the preliminary agreement reached weeks ago with a group, led by BlackBerry's biggest shareholder, Fairfax Financial


Holdings, to take the company private for about $4.7 billion, a bid which has faced some skepticism because of financing questions. The company, based in Waterloo, Ontario, has asked for


preliminary expressions of interest from potential strategic buyers, which also include Intel Corp and Asian companies LG and Samsung, by early next week. It is unclear which parties will


bid, if any. But the potential technology buyers have been especially interested in BlackBerry's secure server network and patent portfolio, although doubts about the assets' value


remain an issue, the sources said. (_Read more_: Cereberus is interested in BlackBerry: Reports) Google, Intel, Cisco, LG and SAP declined to comment. Samsung was not immediately available


for comment. Possible bidders are proceeding with caution given the uncertainty around BlackBerry, which last month reported a quarterly loss of nearly $1 billion after taking a writedown on


unsold Z10 phones. The value of BlackBerry's patent portfolio and licensing agreements is likely to halve in the next 18 months, a company filing from this week shows, potentially


limiting its attractiveness. (_Read more_: BlackBerry reports deep loss, revenue drop) According to analysts, BlackBerry's assets include a shrinking yet well-regarded services business


that powers its security-focused messaging system, worth $3 billion to $4.5 billion; a collection of patents that could be worth $2 billion to $3 billion; and $3.1 billion in cash and


investments. Adding to the company's woes, it's likely to burn through almost $2 billion of its cash pile in the next year and a half, Bernstein analyst Pierre Ferragu wrote on


Thursday after studying the filing. Private equity firms that have showed interest in BlackBerry - which also include Cerberus Capital Management - have asked the company and its advisers to


provide additional financial details about its various business segments, two of the sources said. That process could take another few weeks, as BlackBerry focuses on taking bids from


industry peers, the sources said. In August, the company said it was weighing its options, which could include an outright sale, after Reuters first reported BlackBerry's board was


warming up to the possibility of going private. (_Read more_: BlackBerry shares sink on bid drop, T-Mobile news) At that time, it formed a five-member special committee chaired by board


director Timothy Dattels. Other members include Chairman Barbara Stymiest, Chief Executive Thorsten Heins, Richard Lynch and Bert Nordberg. A spokesman for BlackBerry said in an emailed


statement to Reuters: "The special committee, with the assistance of BlackBerry's independent financial and legal advisors, is conducting a robust and thorough review of strategic


alternatives." He declined to provide further comment. JPMorgan Chase & Co and RBC Capital Markets are advising BlackBerry. The board is being advised by Perella Weinberg Partners,


the sources said. Skadden, Arps, Slate, Meagher & Flom LLP and Torys LLP are providing legal advice. Follow us on Twitter: @CNBCWorld