BlackBerry calls off sale, will replace CEO

Hopes to raise about $1 bn from institutional investors

BlackBerry Ltd is abandoning a plan to sell itself and instead will replace its chief executive officer and raise about $1 billion from institutional investors, including its largest shareholder, the smartphone maker said on Monday.

Shares of BlackBerry dropped 19% to $6.33 in premarket trading. The company will raise the money with a private placement of convertible debentures.

BlackBerry's largest shareholder, Fairfax Financial Holdings Ltd , will take up $250 million of the debentures.

Fairfax announced a tentative $9-a-share offer for the Waterloo, Ontario-based company in late September. But Reuters said on Friday that Fairfax was struggling to finance the $4.7 billion bid.