Seeking Alpha

BlackBerry going-private offer coming from Fairfax?

  • Included in the BlackBerry strategic alternative news is Fairfax Financial's (FRFHF.PK) Prem Watsa resigning from the board to avoid a conflict of interest.
  • Leading the special committee will be TPG Capital Senior Partner Timothy Dattels.
  • The combination suggests some sort of going-private bid by Fairfax, perhaps partnering with the Canadian Pension Plan.
  • BBRY is set to resume trading at 8:30 ET.
Comments (26)
  • DeepValueLover
    , contributor
    Comments (8135) | Send Message
     
    This is EXACTLY what Nokia should be doing as well.

     

    Good move Fairfax/BlackBerry!! Great Deep Value Investing for the long term!
    12 Aug 2013, 08:27 AM Reply Like
  • mitrado
    , contributor
    Comments (1948) | Send Message
     
    "This is EXACTLY what Nokia should be doing as well."

     

    What? Give up, abandon ship & sell all assets to the highest bidder!?
    13 Aug 2013, 03:43 AM Reply Like
  • LYogi
    , contributor
    Comments (1986) | Send Message
     
    Be fair to the little guys Prem!!!
    12 Aug 2013, 08:29 AM Reply Like
  • Infinity Group
    , contributor
    Comments (550) | Send Message
     
    yes, be fair. Valuing company now, can't see it being less than $20, but who knows what the offer is. remember Watsa is in at $17
    12 Aug 2013, 08:36 AM Reply Like
  • Dampflok
    , contributor
    Comments (787) | Send Message
     
    Why would he bid anything more than what he absolutely has to? His average price so far is immaterial if he can average down.
    12 Aug 2013, 08:42 AM Reply Like
  • alext1379
    , contributor
    Comments (706) | Send Message
     
    Depending on your avg pricing, I'm sure he'll bid min $15, especially if his bid isn't the only one.

     

    He said BB should be $40 so it means he was only using a p/e of about 2.5x. If he really does believe in it, he may go as high as 3x to ensure everyone who isn't deep in the red will choose his bid. CPPIB will pay a fair price but they won't overpay depending on their valuation of BB.
    12 Aug 2013, 08:38 AM Reply Like
  • oldtimer125
    , contributor
    Comments (126) | Send Message
     
    Prem Watsa resigned from the board because Fairfax is going to keep its share position when Blackberry goes private and ride with the hedge fund and Canada Pension Plan. This may also indicate a price well below NAV of roughly $18/share.
    12 Aug 2013, 08:40 AM Reply Like
  • Michael Bryant
    , contributor
    Comments (5350) | Send Message
     
    My bet: bit will be about $15. When other companies crashed, the buyout was the price just before the crash.
    12 Aug 2013, 08:47 AM Reply Like
  • GotLife
    , contributor
    Comments (1214) | Send Message
     
    "Prem Watsa resigned from the board because Fairfax is going to keep its share position when Blackberry goes private"

     

    Possibility exists he is unloading a bad investment on the CPP.
    12 Aug 2013, 08:50 AM Reply Like
  • Aristotle5
    , contributor
    Comments (285) | Send Message
     
    I would not be surprised to see some competitive bidding for BBRY. BBRY is very well positioned for the long term. Wall Street lives in the moment and not the long term. Even if PW's Fairfax tries to buy BBRY the other people who own over 70% of the stock have to agree to the price. I believe it will be in the $18.00 to $20.00 range and possibly higher if there is competitive bidding. Cramer is claiming BBRY is desperate. He is very often dead wrong!
    12 Aug 2013, 08:57 AM Reply Like
  • LYogi
    , contributor
    Comments (1986) | Send Message
     
    agreed. watch other bidders reveal themselves shortly.
    12 Aug 2013, 09:00 AM Reply Like
  • Aristotle5
    , contributor
    Comments (285) | Send Message
     
    You can bank on that.
    12 Aug 2013, 09:05 AM Reply Like
  • mitrado
    , contributor
    Comments (1948) | Send Message
     
    Cramer is the guy who recommended buying RIM just above $50 because it would be back to $70 in a very short time. 2 years later, $50 is a mirage. :-P
    12 Aug 2013, 12:28 PM Reply Like
  • slcUTAH
    , contributor
    Comments (498) | Send Message
     
    Cramer loved to short RIM. He made a lot of money with that play over and over. Cramer's net worth is just a bit north $100 million. Not bad for a guy that lived in his car before he got rolling.

     

    -Cheers!
    12 Aug 2013, 02:29 PM Reply Like
  • ATInsider
    , contributor
    Comments (422) | Send Message
     
    Joint Venture.
    12 Aug 2013, 09:05 AM Reply Like
  • slcUTAH
    , contributor
    Comments (498) | Send Message
     
    I would love to see a joint venture! Hey, BTW, on CNBC this morning it was mentioned that Carl Icahn is going to make a big announcement on Twitter in 2 to 3 days. (He is getting a big kick out of using Twitter!) Anyways, on his tweet he will mention what he's going to do next and it will be BIG. I'm not not trying to say that his announcement has anything to do with BBRY but you never know. Coincidence? Maybe... maybe not.

     

    Cheers!
    12 Aug 2013, 02:33 PM Reply Like
  • logicalman
    , contributor
    Comments (763) | Send Message
     
    If you or I was interested in buying whatever, wouldn't we try to get the lowest possible price? Prem and whoever are no different, they will want to get BBRY at the lowest, to sell it later at the highest price possible. Important word ''POSSIBLE''. Be ready for all sorts of wheeling and dealing. At this point I believe 17. to 20. as a low first offer. Interesting times ahead, stay tuned. Peace!!!
    12 Aug 2013, 09:08 AM Reply Like
  • Dampflok
    , contributor
    Comments (787) | Send Message
     
    agreed, see my comment before. Also there will be no short squeeze beyond the take over bid. The market will trade just under the offered price and the shorts will have ample time to cover there. Again, I don't expect any presents here!
    12 Aug 2013, 09:13 AM Reply Like
  • logicalman
    , contributor
    Comments (763) | Send Message
     
    Stock is up +9% @ 9.10 am, LOOK OUT SHORTS!!!
    Stampede??? We shall see. Peace!!!
    12 Aug 2013, 09:14 AM Reply Like
  • alext1379
    , contributor
    Comments (706) | Send Message
     
    Could be but he would wait for a bid to see how high this goes rather than dumping now. His entry point was under $10 so he's got nothing but gains to look forward to.
    12 Aug 2013, 09:18 AM Reply Like
  • xtremetrader
    , contributor
    Comments (54) | Send Message
     
    This isn't going to 15 or 18 like some hope. What ever entity takes over will want it as cheap as possible. 12 dollars maybe?
    Scoitabank has BB total value at $10.16
    12 Aug 2013, 09:23 AM Reply Like
  • logicalman
    , contributor
    Comments (763) | Send Message
     
    xtremetrader,
    '' Scotiabank has BB total value at $10.16''.
    That was then, this is now, totally different ball game. Banks all over have been wrong before, wouldn't you agree? To all longs, breathe slowly through your nose, get outside, enjoy the weather, play with your kids, whatever. Don't follow this too closely, leave that to the day traders. Look at today's action after the close. Take the time to think logically before taking any action, if you decide to do something wait till at least noon tomorrow. Except if you are like me, you will probably be buying a few more shares at these exceptional prices. Peace!!!
    12 Aug 2013, 12:07 PM Reply Like
  • slcUTAH
    , contributor
    Comments (498) | Send Message
     
    I see the stock keep rising little by little during this whole firecracker. I think a pullback will be little... 3% to %5. Today's surge was impressive. Just be careful and don't get greedy. logicalman's advise is recommended. The best of luck to all BBRY stock holders.

     

    -Cheers!
    12 Aug 2013, 02:39 PM Reply Like
  • logicalman
    , contributor
    Comments (763) | Send Message
     
    Thanks for the vote of confidence, it could be a roller coaster ride, but it's a safe one. Patience, discipline, will ultimately win. Peace!!!
    12 Aug 2013, 03:19 PM Reply Like
  • Teutonic Knight
    , contributor
    Comments (1998) | Send Message
     
    At this price it is dirt cheap, and I don't think the smartphone/smart tablet market is finished or over-crowded as such.

     

    Key is to isolate itself from the day-to-day market fluctuations and the media hypes and attacks. Then they need to put a real dynamic CEO to resurrecting this once fledging company. It can be done In my view.
    12 Aug 2013, 03:30 PM Reply Like
  • gbousta007
    , contributor
    Comments (44) | Send Message
     
    BBRY valuation's depend on how much you value their PPE and intangibles. You can read more on my blog and let me know what you think

     

    http://bit.ly/16GAWjj
    12 Aug 2013, 03:47 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|