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Macleans.ca

Canada’s magazine

BlackBerry back on death watch

BlackBerry’s “death spiral” appears set to resume. The troubled maker of smartphones has ditched plans to go private in a tentative deal that would have seen Prem Watsa’s Fairfax Financial and other investors pay $9 a share for the company—ostensibly providing a floor for the flagging stock. Instead, BlackBerry plans to raise $1 billion in cash through the sale of debt instruments that can later be converted into equity if BlackBerry’s shares return to the $10 mark. Investors weren’t thrilled with the deal, which threatens to dilute their holdings. They bailed out of the stock Monday, pushing it down 16 per cent to just $6.50.