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BlackBerry to press Canadian government on foreign M&A rules

  • BlackBerry (BBRY -2.6%) is set to talk with lawmakers about the Investment Canada Act, which covers the acquisition of local firms by foreign companies. Any acquisition worth more than C$344M ($332M) is automatically reviewed.
  • BlackBerry's actions come amid reports Prem Watsa is having trouble getting Canadian pension funds to join his efforts to take BlackBerry private. The NY Post previously reported BlackBerry would prefer a "Google-like" buyer (almost certainly a foreign company) over a P-E firm.
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Comments (22)
  • oldtimer125
    , contributor
    Comments (127) | Send Message
     
    Blackberry must be close to a deal as there is no other reason to engage with the Canadian gov't on a foreign take over. Anyone monitoring private jet traffic into Ottawa may have an insight into who has been kicking Blackberry's tires.....
    11 Sep 2013, 01:28 PM Reply Like
  • Randal James
    , contributor
    Comments (3875) | Send Message
     
    Old Timer

     

    I heard they had to order a new set of tires. "Sidewall fatigue."

     

    The smell of blood is powerful. I think there is too much value here to be ignored but the pricing and reach of offers may disappoint all but the most realistic of longs.
    11 Sep 2013, 02:32 PM Reply Like
  • LYogi
    , contributor
    Comments (2575) | Send Message
     
    What's your call Randal? $12?
    11 Sep 2013, 04:24 PM Reply Like
  • KIA Investment Research
    , contributor
    Comments (11423) | Send Message
     
    Wait a dang minute.
    Didn't ol' Prem just secure billions of dollars, and was working to get more to close this coffin?

     

    Oldtimer, based on the Prem Watsa rumor a couple days ago, then this, I think BlackBerry is further from a deal, not closer.

     

    And Yogi, my call is $8
    11 Sep 2013, 04:49 PM Reply Like
  • Randal James
    , contributor
    Comments (3875) | Send Message
     
    LYogi

     

    I think the deal goes down something like Nokia's did where a very interested party wants Enterprise and not much else. The cash portion is $X per share, which leaves $10.40 - X = How much is this thing worth again???

     

    The handset business is toast - at least where anyone might be expecting to see them in showrooms under the BlackBerry name next year. BBM has a bit of value but not too much. It is not unique enough. QNX... hard to know. Hasn't had much revenue associated with it but could a BBRY focused on software solutions leverage it into a trickle or better?

     

    Patents are a likely source of revenue but this is dangerous to postulate upon. If Lenovo is serious about handsets, patents are a good way to minimize what you pay others for the right to sell phones. Lenovo might want to have part of the hardware, but I'm guessing not. Otherwise, patents are something you use to sue people for infringing upon.

     

    Not to be overlooked, as with Coke or Tiffany, there is value to the brand name itself. I cannot imagine the most clever ways to monetize this but someone will (hopefully not someone on this BOD).

     

    Nokia went +/- 50% following the deal with Microsoft. It may be ambitious to suggest that for BBRY because there is one more bad report to unveil. From there a bounce to $11or $12 is not out of the question with one REALLY important qualifier: there must be someone there with a check - the bigger the better as my girlfriend used to say. (not really)

     

    Good luck, LY. I admire everyone's fierce loyalty here and hope it translates.
    11 Sep 2013, 06:03 PM Reply Like
  • LYogi
    , contributor
    Comments (2575) | Send Message
     
    Gracias
    11 Sep 2013, 06:04 PM Reply Like
  • mirage12
    , contributor
    Comments (98) | Send Message
     
    IMO there is no point of selling at $8. That was not the point of this whole circus. If that's the going offer they would be better served to get a few studs driving the bus, continue to downsize and figure out how to become profitable. Which they aren't that far off from. They aren't going out of business, they just need to figure their s**t out. Tell the world they aren't going anywhere and sooner than later the relentless media attention will subside. I don't think it's as much of an all in situation that is being portrayed.
    11 Sep 2013, 10:12 PM Reply Like
  • L. William Woodward
    , contributor
    Comments (2) | Send Message
     
    Some people do have unrealistic expectations on the long side, but it's the shorts who are truly deluded. They don't even seem aware that they're in a trap. There are 150 million short
    Shares that will have to be bought back and returned at whatever price a buyout happens. I own jan 14 10 calls which I believe will be profitable, due to the shorts covering, even at the current market price.
    15 Sep 2013, 11:10 AM Reply Like
  • Aussie2009
    , contributor
    Comments (598) | Send Message
     
    I too, believe that some kind of a deal is coming very soon. My gut feeling is that it will be before 9/27. Gut feeling and nothing more than that!
    11 Sep 2013, 01:42 PM Reply Like
  • KIA Investment Research
    , contributor
    Comments (11423) | Send Message
     
    New rumor out this afternoon.

     

    "Venezuela to buy BlackBerry"

     

    A Venezuelan official close to the negotiations was quoted as saying "the check is in the mail." http://bit.ly/15XfBQw
    11 Sep 2013, 04:53 PM Reply Like
  • pjews
    , contributor
    Comments (588) | Send Message
     
    LG & Blackberry would be a good partnership.
    11 Sep 2013, 01:56 PM Reply Like
  • vantech
    , contributor
    Comments (21) | Send Message
     
    "It's now or never" for downtroden BBRY. (Long)
    With the 'Enterprise & Security & Gov't' strongholds I think
    that MSFT ought to step up and buy BBRY. Their market
    share would well increase and they, MSFT, would become a more formidable competitor - especially with PC sales in a downward
    spiral... Vantech
    11 Sep 2013, 01:57 PM Reply Like
  • jcount
    , contributor
    Comments (275) | Send Message
     
    On the 27'th maybe, but not anywhere before that - unless it's a partner-ship licensing sell off HW

     

    Things weren't actually that bad for Q1...

     

    Revenue $3.1 billion, up 15% sequentially from the previous quarter
    • North America revenue grows sequentially 30%, APAC revenue grows 35%, EMEA revenue
    grows 9%
    • LATAM revenue declines 6% as Venezuela foreign currency restrictions negatively impact $72
    million of service revenue recognition in the first quarter; company gross margins negatively
    impacted by 2%
    • Shipments of 6.8 million smartphones, up 13% sequentially from the previous quarter
    • GAAP loss from continuing operations of $84 million, or $0.16 per share
    • Adjusted loss from continuing operations of $67 million, or $0.13 per share
    • Venezuela foreign currency restrictions impact reported GAAP earnings and adjusted earnings by
    approximately $0.10 per share; excluding such impact, adjusted earnings in-line with previously
    provided outlook of approaching breakeven financial results
    • Cash flow from operations of $630 million
    • Cash and investments balance of $3.1 billion

     

    Yet the stock plummeted 34% within the first hour from 16 to 10.6.

     

    If theres any serious offer prior to sept 27 it'll probably be a done deal more or less @ 17 or close to book value. Theres litterally no way the secound quarter result is ńot comming out and the sentiment is already very negative... So if they are positive... There's no way to hide them.

     

    If negative then the stock has already been hammered and the shorts do need to cover at any serious offer
    11 Sep 2013, 02:03 PM Reply Like
  • the_value_vulture
    , contributor
    Comments (245) | Send Message
     
    Blackberry's sales statistics have likely cratered immensely since they last reported Q1 numbers. Since the company's "strategic alternatives" announcement, customers will either forestall purchases (Morgan Stanley) or ditch the BB system all together with every passing day.

     

    IMO, management needs to desperately provide some type of clarification on their progress or have a deal in hand over the next few weeks. The value destruction will rapidly increase otherwise.
    11 Sep 2013, 10:36 PM Reply Like
  • jcount
    , contributor
    Comments (275) | Send Message
     
    The stament was made august 12th the quarter ends by Aug so more or less limited to half a month
    12 Sep 2013, 07:11 AM Reply Like
  • alext1379
    , contributor
    Comments (713) | Send Message
     
    There's too many ways to play it if there is an offer imminent.
    If earnings looks bad, save news to boost stock. If good, would it be better to pre-announce and look for a double boost? That might cause shareholders to get greedy and demand a higher offer.

     

    A buyer may want to wait if they think SP will get hammered and go into the negatives. A buyer may want to get it down so no one else get it, especially if earnings look to be better than forecast (not sure how they could do this legally but I'm sure they will).
    11 Sep 2013, 03:09 PM Reply Like
  • Black Truck
    , contributor
    Comments (39) | Send Message
     
    Blackberry needs to stay the course. Give BB10 a complete year to gain traction. This is an artificial "crisis". Blackberry simply needs to align its labour force with current sales, and they will return to profitability.
    11 Sep 2013, 06:14 PM Reply Like
  • premshivprakash
    , contributor
    Comments (5) | Send Message
     
    BB just need good sales in USA with the carrier. if they can make good deal with carrier this will run.
    Look yesterday what happened with apple they just did not deliver the best and stock is getting crushed today. But apple has strong hold with various carriers and making good sale.
    BB sales team needs to re structure .
    11 Sep 2013, 09:43 PM Reply Like
  • Crazy Mazy
    , contributor
    Comments (434) | Send Message
     
    I't looks like they have buyer lined up for sure now or they wouldn't be asking the Government about foreign takeover, would they. Also remember even Microsoft would be considered a foreign take over, albeit a more favorable foreign take over. So it may not be just Lenovo or some Asian takeover. I think things are going to pop very soon! All you nay Sayers better hope your not on the wrong side of a short bid! All these stories about now Watsa has buyers now he doesn't is all speculation and BS. How would anyone know what is said in the board room unless it is leaked, And that would be totally illegal so i doubt it.
    12 Sep 2013, 02:51 AM Reply Like
  • Crazy Mazy
    , contributor
    Comments (434) | Send Message
     
    No i don't think a buyer will wait for the stock price to drop. If they find value and are serious they will go for it. If they wait what's to say someone might put in a bid then they will have to get into a bidding war. Not smart.
    12 Sep 2013, 02:51 AM Reply Like
  • Crazy Mazy
    , contributor
    Comments (434) | Send Message
     
    I suspect Prem Watsa does have the CPF on board, but he wants to wait and see if a "googlelike " buyer will emerge. If they don't then they will take the company private with the help of the pension fund investors. Doesn't that make sense?
    12 Sep 2013, 02:51 AM Reply Like
  • Randal James
    , contributor
    Comments (3875) | Send Message
     
    Mazy - not only would a Microsoft offer be a foreign takeover, it might even qualify as a scriptural miracle!
    12 Sep 2013, 03:18 AM Reply Like
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