Blackberry in $4.7bn takeover deal with Fairfax

Struggling smartphone maker Blackberry has agreed in principle to be bought by a consortium led by Fairfax Financial for $4.7bn (£3bn).

Blackberry said in statement that Fairfax, its largest shareholder with about 10% of the stock, had offered $9 a share in cash to buy the company.

But Blackberry said it would continue to explore other options while negotiations with Fairfax continued.

On Friday, Blackberry announced 4,500 jobs cuts in a bid to stem losses.

The Canadian company said it expected to make a loss of up to $1bn after poor sales of its new handsets. In August, Blackberry said it was evaluating a possible sale.

On Monday, the company announced that it had "signed a letter of intent agreement under which a consortium to be led by Fairfax Financial Holdings Limited has offered to acquire the company subject to due diligence".

The statement continued: "Diligence is expected to be complete by November 4, 2013. The parties' intention is to negotiate and execute a definitive transaction agreement by such date."

However, Blackberry said it was not in exclusive talks with Fairfax and would continue to "actively solicit, receive, evaluate and potentially enter into negotiations" with other potential buyers.

Canadian billionaire Prem Watsa, Fairfax's chairman and chief executive, said: "We believe this transaction will open an exciting new private chapter for Blackberry, its customers, carriers and employees.