Monday, September 23, 2013
So, no surprise to anyone that Blackberry has been circling the drain. Perhaps this latest announcement of letter of intent between Blackberry and one it's largest investors is the final sign that the end is near. Fairfax is proposing to acquire Blackberry for $9/share in cash. But, according to Bloomberg, it's not much actual cash. In fact, almost no new equity from Fairfax:
Fairfax doesn’t plan to invest more cash as part of the takeover bid, relying on others for the remaining financing. The investor will roll over its 9.9 percent stake in BlackBerry, worth $457 million as of today’s close, [Fairfax CEO] Watsa said. Other investors will be able to finance the rest of the purchase through equity and debt, he said.
Well, given the weak prospects of Blackberry, maybe shareholders want someone who will be willing to swing for the fences.