Citi, Wells Fargo doubt another BlackBerry bidder will emerge

Citi's Jim Suva and Wells' Maynard Um both use the word "unlikely" to describe the odds of BlackBerry (BBRY) receiving a bid that trumps the $9/share offered by a Fairfax-led consortium.

Suva adds the consortium's need for additional financing "poses a real risk in this transaction," given BlackBerry's business challenges could put lenders on edge. He also notes the company's cash burn and pending layoff charges could hurt its balance sheet. Fairfax's offer values BlackBerry at $2.2B exc. cash.

Shares closed today at $8.82, 2% below the offer price.

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Comments (19)
  • Timmy123
    , contributor
    Comments (112) | Send Message
    The question is: Will the shareholders accept such a low bid?
    23 Sep 2013, 06:48 PM Reply Like
  • Michael Brando
    , contributor
    Comments (29) | Send Message
    Well if Watsa and the majority shareholders vote for, then shares will be exchanged for $9 regardless of an individual's vote when the deal closes
    23 Sep 2013, 07:06 PM Reply Like
  • ajdr
    , contributor
    Comments (19) | Send Message
    Watsa has the 10% of stock. I think that Watsa has the support of others BOD and shareholdes to obtain the majority of votes. But this is only a supposition.
    23 Sep 2013, 08:06 PM Reply Like
  • seymour2
    , contributor
    Comments (157) | Send Message
    If your comment is correct, and the minority shareholders (the majority, but not in number of shares held) have this bid shoved down their collective throat, , then this amounts to a criminal conspiracy.
    23 Sep 2013, 08:09 PM Reply Like
  • JCvS
    , contributor
    Comments (2) | Send Message
    Are you suggesting that a majority of shareholders that represent less than 50% of the value of the company should control what the company does? Think about that.
    23 Sep 2013, 10:27 PM Reply Like
  • gchaput
    , contributor
    Comments (139) | Send Message
    Watsa & Co will do an IPO at $100 a share in a few years... watch.
    23 Sep 2013, 07:11 PM Reply Like
  • helpmepickawinner
    , contributor
    Comments (7) | Send Message
    If you don't think this already is criminal activity, you are all blind, deaf, and dumb. So many things happened since Friday.


    First and foremost is how they decided to change, all of a sudden, for this quarter how they recognize device sales. Then pulling BBM from Android and iPhone. Pre-announcing BS, tanking the stock, then all of a sudden you get an offer on the following Monday for $1.50 LESS than what it was trading at less than 1 session prior.


    Heins doesn't give a ish. He's getting paid like mofo.
    23 Sep 2013, 09:24 PM Reply Like
  • Scal80
    , contributor
    Comments (40) | Send Message
    Not to mention the numerous WSJ articles leaked from "sources" (aka BBRY).
    23 Sep 2013, 09:38 PM Reply Like
  • helpmepickawinner
    , contributor
    Comments (7) | Send Message
    I will be joining any class action lawsuit that arises. If one doesn't, I'm going to get one started.


    Heins has misled the shareholders from the launch of BB10 and Watsa was in on it the whole time.
    23 Sep 2013, 09:27 PM Reply Like
  • The Count of Cristo
    , contributor
    Comments (304) | Send Message
    and Heins will get about $54 million if bbry goes on sale
    23 Sep 2013, 10:00 PM Reply Like
  • Tufenk
    , contributor
    Comments (935) | Send Message
    Smells like an overflowing cesspool. What a shame. Like stealing failure from the jaws of victory. Wem Pratsa is in town, leave. Anatomy of a takeunder....
    23 Sep 2013, 10:03 PM Reply Like
  • premshivprakash
    , contributor
    Comments (5) | Send Message
    they should be giving minimum $18 . this is very bad. what just happened. first all bad news and then sudden sale. CEO wanted to stay in 3rd place few months back. Now he just lost hopes on his own product or on himself?
    I hope someone looks into this
    23 Sep 2013, 10:10 PM Reply Like
  • hoss181
    , contributor
    Comment (1) | Send Message
    there will be another bid to come. the next bid will be over $10 and Watsa gets a payment of $260M equal to $5 bucks a share for his current stake...he comes out even or makes a few bucks and all the shareholders get the short end of the orchestrated and so blatant but no one will do anything about it.....
    23 Sep 2013, 10:12 PM Reply Like
  • la cabanya
    , contributor
    Comments (70) | Send Message
    Will joint you. Let's get rolling!
    How we get this thing going is the question!
    I would love to see the Canadian government and the SEC investigate to the end!
    Friday the worst news to prepare for the price drop!
    Monday a deal emerge that was by a miracle made in a couple of hours (done in a cafe and signed in a napkin), including the decision of paying to PW 150 Million and the guy can walk away if he say can't get financing.


    TH, PW and the Board of Directors for all this year damaging facts!
    23 Sep 2013, 10:49 PM Reply Like
  • helpmepickawinner
    , contributor
    Comments (7) | Send Message
    Looking into it with a few attorney friends.
    24 Sep 2013, 12:03 AM Reply Like
  • rome321
    , contributor
    Comments (6) | Send Message
    Count me in.
    26 Sep 2013, 08:33 AM Reply Like
  • alext1379
    , contributor
    Comments (811) | Send Message
    Buy Nov $7 puts in the event Watsa can't get other people to buy him BlackBerry and BB shares totally crater after earnings.


    The puts are cheap so isn't a huge financial risk unless you do something stupid and somehow buy 1000 of them.


    As I said before, if Prem is buying, its going to be cheap, if he's selling, it'll be higher.


    If you're really upset and want to feel like you're doing something, write your MP and hopefully they aren't getting any kickbacks to approve the deal and throw shareholders and investors under the bus.
    23 Sep 2013, 11:53 PM Reply Like
  • Ben Learner
    , contributor
    Comments (211) | Send Message
    BlackBerry route plan:


    Phase 1: deliberate incompetent roll out of good products
    Phase 2: deliberate destruction of shareholder value followed by massive layouts and low ball offer, halting the release of BBM, as they know there will be considerable interest and the market may react positively
    Phase 3: spread further bad news to further tank stock so offer will get accepted


    We are at stage three of this charade.


    Heins must be regretting getting Canadian citizenship. He has put his head on the block following that 50M carrot. That money should last him, as I do not expect it will be job offers that will be filling his hub.


    Watsa turns out to be no Buffet. I think this much is clear. He should not be surprised if people start endearingly calling him Bernie (he likes F1... you see?)


    Bernie should rethink if he believes his Fairf**ks holding is getting out of this unscathed. Reputations are all important.


    This is what shorts knew all along. Credit where credit is due.
    24 Sep 2013, 12:02 AM Reply Like
  • mbr23a
    , contributor
    Comments (7) | Send Message
    24 Sep 2013, 02:58 AM Reply Like
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