Analysis: Canada veto complicates BlackBerry, telecom deal making

When Canada blocked the sale of a fiber optic network to a company backed by an Egyptian telecommunications tycoon, it telegraphed its resolve to make national security paramount when considering whether to allow a foreign firm to acquire what it considers a strategic asset. That warning may effectively limit the pool of would-be buyers of BlackBerry, or foreigners interested in Canada's telecommunications industry. It could also rule out all but a few well-established players based in North America, industry executives, lawyers and analysts say.

The Canadian government's ruling was a blow to Manitoba Telecom Services, which wanted to sell its Allstream fiber optic network to Accelero Capital Holdings, controlled by Egyptian businessman Naguib Sawiris. But for BlackBerry, the embattled smartphone maker, Ottawa's decision may not make much difference as primarily North American companies appear to be interested in acquiring the parts of the company that would raise security concerns.