Mobile phone company Blackberry is set to be acquired by its largest shareholder Fairfax Financial for £3 billion, if negotiations are successful.

Shareholder Fairfax, which already holds 10 per cent stock of the Canadian phone company, has signed a letter of intent agreement to acquire the company with Blackberry.

Blackberry said in a statement: “Diligence is expected to be complete by November 4, 2013. The parties' intention is to negotiate and execute a definitive transaction agreement by such date.

Blackberry has stated that current discussions with Fairfax do not prevent further negotiations surrounding other offers.

Fairfax's chairman and chief executive Prem Watsa said: “We can deliver immediate value to shareholders, while we continue the execution of a long-term strategy in a private company with a focus on delivering superior and secure enterprise solutions to Blackberry customers around the world."

Negotiations surrounding the sale come after the phone company announced 4,500 job cuts last Friday, in a bid to cut costs.

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