NEW YORK (TheStreet) - BlackBerry (BBRY - Get Report) shares plunged in premarket trading on Monday on news that the handset maker is abandoning its sale to Fairfax Financial Holdings. In a statement released before market open, BlackBerry announced that it is selling $1 billion worth of convertible debt with Fairfax buying $250 million of the debt.
The transaction is expected to completed within the next two weeks, at which time BlackBerry CEO Thorsten Heins will step down. Heins will be replaced on an interim basis by former Sybase CEO John Chen, who will also be appointed executive chair of BlackBerry's board when the transaction closes.
BlackBerry's shares tanked 20.21% to $6.20 before market open. The Waterloo, Ontario-based firm was also the most active premarket Nasdaq stocks on share volume of 7,037,83.
Facebook (FB) was a more modest laggard, slipping 0.54% to $49.48 on share volume of 786,599.
Must Read: BlackBerry Abandons Sale, CEO Heins Out
--Written by James Rogers in New York.
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