Any Blackberry deal by Lenovo may face regulatory hurdle - source
According to a source who was familiar with the negotiations on Thursday, Chinese computer maker Lenovo might face a regulatory obstacle in any deal it would offer to Blackberry Ltd. It was reported that Lenovo had inked a a non-disclosure deal earlier to review the Canadian smartphone maker's books.
Blackberry had said in August that it was looking at strategic options that could probably lead to a company sale. A string of potential buyers, including major companies, had been linked to the Canadian company regarding its planned exit.
The Investment Canada Act allows the Canadian government to block foreign takeovers of a local asset should it deem that the deal would not provide a net benefit to the country or could pose a national security threat. The government of Canada had blocked an attempted takeover of the Allstream fiber optic network owned by Manitoba Telecom Services Inc by an Egyptian entrepreneur, citing national security concerns as the reason to do so.
Canadian Industry Minister James Moore refused to comment on the story, while Lenovo downplayed Chief Financial Officer Wong Wai Ming's earlier comments about the country's interest in the smartphone maker.