Seeking Alpha

BlackBerry resumes trading, shares at $8.92

  • BlackBerry (BBRY +2.6%) is trading slightly below the $9/share buyout price agreed to with a Fairfax-led consortium. For now at least, investors aren't betting on a higher bid arriving.
  • BlackBerry says the consortium is seeking financing from BofA/Merrill and BMO to help pay for its bid, and that the deal is still subject to due diligence, among other conditions.
Comments (27)
  • Looks like I'm not among the smart money here... I bought big when the market opened at $9.12. I still expect a bidding war, but all I can do now is sit back and hope.
    23 Sep 2013, 02:10 PM Reply Like
  • Well, if you have second thoughts, you can still bail out (or reduce exposure) for a minimal loss ($8.85 ATM).

     

    Keeping in mind that if Fair and Friends fail to get financing, it could be Mariana's Trench...as now BOD has indeed shown its cards. For sale sign is out and if that fails, nothing...
    23 Sep 2013, 02:14 PM Reply Like
  • I don't understand why you think investors will line up to buy this company. Each day it passes it's worth much less.
    23 Sep 2013, 02:23 PM Reply Like
  • Subject to financing and subject to due diligence. A stronger company would not even announce such a letter of intent, not until they had gone firm. But given the debacle and lack of previous disclosure, they have to err on the side of caution.

     

    This is Prem's last round of averaging down.
    23 Sep 2013, 02:26 PM Reply Like
  • It does appear nearly more like an attempt to raise the floor, rather than a serious level. Also appears highly suspect with the delay on news announcement Friday. Several analysts pointed out that BBRY executives should have asked for an earlier trading halt, prior to the news release. Now the news release appears to allow Watsa and some pension funds the ability to monetize a purchase at a lower level.

     

    If more bids come in, then Watsa can make even more gains. It will be interesting to see what Lazaridis and friends come up with for a bid. Seagate once stopped being a public company in order to refocus the company, then returned to the markets. Longer term I think that direction would be the most likely outcome.
    23 Sep 2013, 09:50 PM Reply Like
  • Hurray! The best possible solution. Go BlackBerry!
    23 Sep 2013, 02:29 PM Reply Like
  • Please keep in mind that now you are betting against Fair and Co., not BB. Different game
    23 Sep 2013, 02:30 PM Reply Like
  • Is this the main reason for preannouncement last Friday?
    23 Sep 2013, 02:50 PM Reply Like
  • Yeah, that's what I think. Helped drive the price down 20%.
    Made the bid look better.
    Insider information is great, if you can get it.
    23 Sep 2013, 03:20 PM Reply Like
  • Where is the SEC?
    23 Sep 2013, 03:01 PM Reply Like
  • I presume the actual price is $2.1 billion since Watsa is getting $2.6 billion in cash as part of the deal.

     

    The patents at worse are worth $1 billion (worst case), plus cash, basically he's saying BES with increasing revenue and the HW business (which can be written off and forgotten in a year) is worth less than $1 billion.

     

    Either Fairfax is setting a floor price ($9 + $.50 penalty) for another buyout offer, he's setting BB up for a further collapse where he'll buy for cheaper, or he's going to get sued for insider trading.
    23 Sep 2013, 03:19 PM Reply Like
  • Even getting out at $11, this offer puts a bitter taste in my mouth. If it goes through, I'm probably going to go back to Apple. No poin in supporting a Canadian company if they screwed over a whole lot of Canadians.
    23 Sep 2013, 03:22 PM Reply Like
  • @alex

     

    Didn't you want to accept my criteria for the bet?

     

    I won't declare victory yet, as I still think Blackberry will be filing for bankruptcy in the near future. Just be glad you got out. This is not your game.
    23 Sep 2013, 05:46 PM Reply Like
  • Haha, nice try and dream on.

     

    My criteria, it was nullified.
    Your criteria, you lost.

     

    I suck, that's why I turned my $20 puts into $94.

     

    Finally dig yourself out of that hole or finished using the abuse button to erase history?
    23 Sep 2013, 11:23 PM Reply Like
  • Your criteria, you will lose. My criteria, you will lose as well. I'll remind you.

     

    Your Criteria (which was what was agreed upon):
    Deal. To clarify, being acquired does not constitute bankruptcy, so to avoid premature claims of victory since BB is already ahead of Nokia in the being acquired category. As well, the companies as they currently are must file for bankruptcy, non of this sell off all the good assets, then the shell left over with no revenue files for bankruptcy.

     

    Filing for bankruptcy because there is no buyer of the whole company is what constitutes bankrupt.

     

    My criteria:
    1. Filing for any bankruptcy protection.
    2. Selling for below current market capitalization including acquisition. In BBRY case, that would be 5.3B USD , and 15.6B USD for Nokia
    3. Receive any form of bailout from the government.
    4. Delisting from their respective major exchange. BBRY (NASDAQ), Nokia (NYSE).

     

    Unless you are stupid enough to think 15.6B capitalization is for 1 division....which I think you are. Think again. Blackberry if it does get sold (which I don't think it would) would violate the same criteria. You will lose once the deal is completed.

     

    If you honestly think you've won, reveal your identity. I have no problem taking your sorry @ss to court for this.
    23 Sep 2013, 11:44 PM Reply Like
  • Nobody else can do this as good as BlackBerry, claims Thorsten Heins @ http://stks.co/gmGR

     

    Already over 60% of all of BlackBerry’s Fortune 500 customers, as well as market of government agencies have already installed BES 10. With BES 10 the massive challenge for Blackberry during this transformation is moving from a vertical BlackBerry-only proprietary player to providing a comprehensive cross platform management solution that is evolving to an Enterprise Mobile Services platform regardless of the device deployed.
    23 Sep 2013, 03:41 PM Reply Like
  • I bought at 14.70, so it looks like I am below water. It was a crazy ride.
    23 Sep 2013, 03:59 PM Reply Like
  • Smart!
    23 Sep 2013, 03:59 PM Reply Like
  • It's really sad that a great company has ended like this. I hope they can salvage something from it.
    23 Sep 2013, 03:59 PM Reply Like
  • Yes so they can buy the company cheaper ,I smell class action lawsuit.
    23 Sep 2013, 04:03 PM Reply Like
  • Will Carl Icahn come in and get everyone another $.25 or so?
    23 Sep 2013, 04:21 PM Reply Like
  • Absolutely criminal behavior by BlackBerry, I hope they get dragged across the coals. Preannounce to send the share price into free-fall and make it cheaper for their buyers - at the expense of every shareholder.
    23 Sep 2013, 04:50 PM Reply Like
  • They scould make a movie about this is PW get it for $9.00. They could call it GTC. (grand theft company). In My opinion thats what it would be.
    23 Sep 2013, 05:38 PM Reply Like
  • The famous media and company (the strings holding up a certain puppet) are fixing to make off for pennies with the only truly secure communication platform in the universe. Folks will uranate and moan but the whole deal will disappear behind closed doors and soon forgotten. A shame, a big shame. I thought more of Canadians and their manhood
    23 Sep 2013, 05:50 PM Reply Like
  • I don't know why had to do 9/20 and 9/23 for the bad news Friday buy-out offer Monday thing and they couldn't have just waited for 9/27 and 9/30. I assume the offer isn't that time-sensitive that a week would matter. On 9/27 there will be a full financial statement disclosure with Q&A to follow. The 9/20 disclosure was limited and selective.
    23 Sep 2013, 05:50 PM Reply Like
  • Going Private is great for BBRY and it's customers. Though it's worth a lot more then $9 per share. Absolutely minimum share price that should have been offered is $15 regardless.
    23 Sep 2013, 05:52 PM Reply Like
  • So everyone who's bought between 8-18 for the buyout has finally gotten their (first) buy-out offer. Not too encouraging.
    23 Sep 2013, 06:07 PM Reply Like
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