TECH STOCKS: BlackBerry Plunges After Sale Fails T
Post# of 94267
Posted On: 11/06/2013 1:21:56 AM
TECH STOCKS: BlackBerry Plunges After Sale Fails To Work Out
By Rex Crum, MarketWatch
SAN FRANCISCO (MarketWatch) -- Shares of BlackBerry Ltd. fell sharply Monday, as the troubled smartphone company called off plans to sell itself and replaced Chief Executive Thorsten Heins.
BlackBerry (RIMM) shares tumbled more than 16%, to close at $6.50 after the company said a deal to sell itself to a major shareholder, Fairfax Financial Holdings, had fallen through. Instead, BlackBerry said it will sell $1 billion worth of convertible bonds to Fairfax and other investors. BlackBerry also said it has replaced Heins as CEO with former Sybase CEO John Chen.
Fairfax had until Monday to finalize the financing of a $4.7 billion deal to acquire BlackBerry. No other bidders stepped up with a counteroffer for the Canadian smartphone company.
In addition to BlackBerry, declines also came from Amazon.com Inc. (AMZN), Facebook Inc. (FB), Hewlett-Packard Co. (HPQ) and Pandora Media Inc. (P).
However, the majority of the tech sector put in an upbeat performance Monday, as the Nasdaq Composite Index (RIXF) rose 14.55 points to end at 3,936.59, while the Philadelphia Semiconductor Index (SOX) closed with a small loss.
Groupon Inc. (GRPN) shares climbed 6.4% to close at $10.57. The company's quarterly results are due after Thursday's market close.
Gains also came from Apple Inc. (AAPL), Microsoft Corp. (MSFT), Yahoo Inc. (YHOO), Netflix Inc. (NFLX) and IBM Corp. (IBM).
IBM rose $1.04 a share to end the day at $180.27. On Monday, Twitter (TWTR) said in an updated IPO filing that IBM has accused it of infringing on several IBM patents including some "related to the efficient retrieval uniform resource locators."
(IBM)For its part, Twitter raised the price range on its IPO to between $23 and $25 a share, after earlier expecting an IPO price range of $17 to $20 a share. Twitter is expected to price its IPO on Wednesday and begin trading on Thursday.
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By Rex Crum, MarketWatch
SAN FRANCISCO (MarketWatch) -- Shares of BlackBerry Ltd. fell sharply Monday, as the troubled smartphone company called off plans to sell itself and replaced Chief Executive Thorsten Heins.
BlackBerry (RIMM) shares tumbled more than 16%, to close at $6.50 after the company said a deal to sell itself to a major shareholder, Fairfax Financial Holdings, had fallen through. Instead, BlackBerry said it will sell $1 billion worth of convertible bonds to Fairfax and other investors. BlackBerry also said it has replaced Heins as CEO with former Sybase CEO John Chen.
Fairfax had until Monday to finalize the financing of a $4.7 billion deal to acquire BlackBerry. No other bidders stepped up with a counteroffer for the Canadian smartphone company.
In addition to BlackBerry, declines also came from Amazon.com Inc. (AMZN), Facebook Inc. (FB), Hewlett-Packard Co. (HPQ) and Pandora Media Inc. (P).
However, the majority of the tech sector put in an upbeat performance Monday, as the Nasdaq Composite Index (RIXF) rose 14.55 points to end at 3,936.59, while the Philadelphia Semiconductor Index (SOX) closed with a small loss.
Groupon Inc. (GRPN) shares climbed 6.4% to close at $10.57. The company's quarterly results are due after Thursday's market close.
Gains also came from Apple Inc. (AAPL), Microsoft Corp. (MSFT), Yahoo Inc. (YHOO), Netflix Inc. (NFLX) and IBM Corp. (IBM).
IBM rose $1.04 a share to end the day at $180.27. On Monday, Twitter (TWTR) said in an updated IPO filing that IBM has accused it of infringing on several IBM patents including some "related to the efficient retrieval uniform resource locators."
(IBM)For its part, Twitter raised the price range on its IPO to between $23 and $25 a share, after earlier expecting an IPO price range of $17 to $20 a share. Twitter is expected to price its IPO on Wednesday and begin trading on Thursday.
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
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