NEW YORK (TheStreet) -- BlackBerry (BBRY) shares surged after Reuters reported the company is in talks with Cisco Systems (CSCO), Google (GOOG) and SAP (SAP) to sell itself either entirely or pieces of itself. The publication noted that the companies have yet to submit bids.
The smartphone marker signed a letter of intent with a Fairfax Financial Holdings-led consortium on September 23, pending a period of six weeks' due diligence during which BlackBerry can solicit alternative offers. Many analysts have expressed doubts over the proposed deal since it relies on additional cash from non-Fairfax investors.
Private equity group Cerebus Capital Management has also expressed interest after seeking a confidentiality agreement which would allow it to evaluate all BlackBerry's financial information.
Shares of BlackBerry jumped 4.2% to $8.02, as of 2:20 p.m. ET. The stock has ranged in price between $7.87 to $8.07 after opening the day at $7.97. Overall, BlackBerry is leading the S&P 500, which is down 0.35%.
TheStreet Ratings team rates BlackBerry Ltd as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate BlackBerry Ltd (BBRY) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself."