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Sources: Samsung Electronics could give $7.5 billion for BlackBerry (Update 2)

Staff writer |
Samsung Electronics recently approached BlackBerry about buying the company for as much as $7.5 billion, according to a person familiar with the matter and documents seen by Reuters.

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South Korea's Samsung proposed an initial price range of $13.35 to $15.49 per share, which represents a premium of 38 percent to 60 percent over BlackBerry's current trading price, the source said.

BlackBerry shares closed nearly 30% higher on rumors but then fell down as much as 16%.
Executives from the two companies, Reuters reports, which are working with advisers, met last week to discuss a potential transaction, the source said, asking not to be identified because the conversations are private.

The offer price would imply an enterprise value of $6 billion to $7.5 billion for BlackBerry, assuming conversion of $1.25 billion of convertible debt, according to the documents seen by Reuters.

After jump in share price BlackBerry issued the following statement: "BlackBerry Limited is aware of certain press reports published today with respect to a possible offer by Samsung to purchase BlackBerry. BlackBerry has not engaged in discussions with Samsung with respect to any possible offer to purchase BlackBerry."

BlackBerry shares closed nearly 30% higher on rumors but after the statement from BlackBerry shares fell as much as 16%.

Samsung Electronics spokeswoman told on Thursday that it had no plan to buy Canada's Blackberry Ltd: "Media reports of the acquisition are groundless."

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