BlackBerry Ltd is abandoning a plan to sell itself, the major thrust of the rescue campaign crafted by the smartphone company’s board, and said yesterday its chief executive will resign.

Unable to get a buyout offer for the company finalised after a strategic review that lasted more than two months, BlackBerry said it will instead raise about $1 billion from its largest shareholder, Fairfax Financial Holdings, and other institutional investors.

The moves pushed BlackBerry shares sharply lower. They were down almost 13 per cent at $6.77 late yesterday morning on the Nasdaq.

“Now we’re back to the downward spiral,” said BGC Partners analyst Colin Gillis. “They’ve got $1 billion more cash that buys them time. The drumbeat of negativity is likely to continue.” – (Reuters)