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Fairfax not putting additional cash into Blackberry

  • Fairfax Financial will merely roll over its existing 9.9% BlackBerry (BBRY) stake into its $9/share buyout offer, and won't invest any more cash. Prem Watsa tells Bloomberg his firm will rely on other investors to finance the rest of the deal via equity and debt.
  • The news service reports Watsa has held talks with Mike Lazaradis (previous) to get the BlackBerry co-founder and his 5.7% stake to join Fairfax's effort; Watsa said in an interview today Lazaridis isn't yet involved.
  • In addition, sources state P-E firms Blackstone and KKR decided to pass on BlackBerry, and that Fairfax's consortium is "in flux."
  • BBRY -0.7% AH to $8.76.
  • More on BlackBerry
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Comments (37)
  • Loon-a-tick
    , contributor
    Comments (1614) | Send Message
     
    Watsa...ask all of us retail guys to come on board. I don't know what percentage we are ? Maybe you know. We might own 20%.
    23 Sep 2013, 10:03 PM Reply Like
  • Deja Vu
    , contributor
    Comments (1287) | Send Message
     
    Watsa is merely looking for suckers to unload his stake, one way or another...
    23 Sep 2013, 10:08 PM Reply Like
  • Tales From The Future
    , contributor
    Comments (5018) | Send Message
     
    Does this mean the Canadian taxpayer will have to foot the bill in the end?

     

    "sources state P-E firms Blackstone and KKR decided to pass on BlackBerry"

     

    Gee, I wonder why. I don't see other private investors jumping in at $9 considering the risks.
    24 Sep 2013, 01:21 AM Reply Like
  • Dantes_Will
    , contributor
    Comments (343) | Send Message
     
    So Watsa's not putting in any more money. He's looking for some chump to come along and prop up his share.

     

    He's looking at potential losses of, what, hundreds of millions? Desperate times...
    23 Sep 2013, 10:09 PM Reply Like
  • Tufenk
    , contributor
    Comments (963) | Send Message
     
    Waterloo should be weeping tonight.
    23 Sep 2013, 10:11 PM Reply Like
  • Loon-a-tick
    , contributor
    Comments (1614) | Send Message
     
    Oh ...so I'm a chump.... OK!
    Do the math. Add up the tax benefit of about a -1 billion...yes ...Prem has lost money...add 3.1 billion....It has been written down ....however.....that's 4.1 billion...then ad .5 billion in phones in stack at a discount....that's 4.6 billion +-1 billion......he spends a billion for control. Chump!
    23 Sep 2013, 10:14 PM Reply Like
  • Dantes_Will
    , contributor
    Comments (343) | Send Message
     
    Loon -

     

    That was not a dig at shareholders. By 'chump' I mean Watsa was trying to get the canadian pension funds to hold the bag for him.

     

    My point is that I do not trust Watsa's intentions. Apparently neither does Lazardis, who isn't even talking to Watsa, and is working on his own deals to save BBRY. That should speak volumes about Watsa...
    24 Sep 2013, 11:47 AM Reply Like
  • Tufenk
    , contributor
    Comments (963) | Send Message
     
    Thanks for clearing that up. You make a lot of sense here!
    25 Sep 2013, 12:42 AM Reply Like
  • Arduino_RaspberryPi
    , contributor
    Comments (379) | Send Message
     
    Unfortunately, Watsa's word is not worth squat. I really, really thought it was but in the end he did not deliver. I think I have beaten wife syndrome, as I keep believing in what these folks say.

     

    Still a BB fan.
    28 Nov 2013, 06:20 PM Reply Like
  • Loon-a-tick
    , contributor
    Comments (1614) | Send Message
     
    Fun to watch the retail shorts in sh!t now. Ohhh....unloading his stake....chumps.....
    No he is putting his stake in your money maker. Enjoy the ride...we had to listen to you guys....
    23 Sep 2013, 10:16 PM Reply Like
  • mirage12
    , contributor
    Comments (98) | Send Message
     
    Can you elaborate? How is this good for longs?
    24 Sep 2013, 03:57 AM Reply Like
  • sfinvestor
    , contributor
    Comments (987) | Send Message
     
    wow, just, wow.

     

    A sham bid just for show. PW is desperate. Canada's Warren Buffet, lol

     

    So we have BBRY accepting an offer that doesn't even look like an offer and PW an offer that doesn't sound like it is materialize. Is this how Canada roll?
    23 Sep 2013, 10:21 PM Reply Like
  • Timmy123
    , contributor
    Comments (114) | Send Message
     
    So they release bad news, wait for the stock price to drop, then hammer a nail in that price so it won't go up, no matter what.
    What about all of us patient, long term investors?
    23 Sep 2013, 10:22 PM Reply Like
  • canuck671
    , contributor
    Comments (36) | Send Message
     
    Anything to cause disturbance. Rumors and here say. Sources told me that they will he financing options and leveraging the toilet paper as foreign exchange investment.
    23 Sep 2013, 10:24 PM Reply Like
  • tiger8896
    , contributor
    Comments (627) | Send Message
     
    I am beginning to agree this whole thing was orchestrated to allow Watsa to make a rock bottom bid to allow BBRY to go private. It's laughable he doesn't have the financing lined up nor is his consortium finalized yet he makes a bid at what coincidentally is a few cents more than where the stock closed on Friday. It's a fair question as to why he didn't make the bid last week when the stock was higher.
    23 Sep 2013, 10:30 PM Reply Like
  • Dampflok
    , contributor
    Comments (884) | Send Message
     
    Why is that a question?
    24 Sep 2013, 05:48 AM Reply Like
  • la cabanya
    , contributor
    Comments (70) | Send Message
     
    Prem Watsa is looking for a real bargain
    He will be paid 150 Million if somebody offers more money than 9 $ per share, so he trays to interest other people to pay over 9,01 $ which is great for him! but...
    He can walk away at cost ZERO if he does not find the proper financing!
    How TH and the DB would ever had signed a deal like that.
    Is there any benefit for BBRY and the shareholders?
    And the agreement between them was structured last week before they released the bad news.
    Evidently they forced the price down to pave the way for PW to get his 150 Million and TH his 55 MIllion!
    And 5.000 people in Waterloo going back home with no more work!
    And Canadian older investors that had their savings in BBRY lost everything there!
    The Canadian Government and SEC should investigate quickly PW, TH and the DB of BBRY, including all the Shorting issues and see if insider trading and strange deals under the table where done there!They
    23 Sep 2013, 10:30 PM Reply Like
  • Quoth the Raven
    , contributor
    Comments (2076) | Send Message
     
    Yuck.
    23 Sep 2013, 10:43 PM Reply Like
  • sfinvestor
    , contributor
    Comments (987) | Send Message
     
    It just reeks of desperation from BBRY.

     

    NOK - play hard to get get 7.2B just for hardware. Everyone is happy.

     

    BBRY - announce a sale to the world and accept any bid, even a bid where the buyer have six weeks for due diligence, no penalty upon break-up (BBRY yes, Fairfax no) and you don't even know who the buyers are and where the money is coming from.

     

    Unless Fairfax can identify this consortium spefically, this is not legit. It's quite embarassing that the BOD of a large publicly traded company is acting like this.

     

    It's really jaw dropping stuff really, accepting a no-premium offer from a buyer that's not even close. So not only is the company killing jobs, it is killing reputations.
    23 Sep 2013, 10:48 PM Reply Like
  • Dampflok
    , contributor
    Comments (884) | Send Message
     
    Don't you get it? That was the best and only deal they could get. If it even materializes at all.
    24 Sep 2013, 05:50 AM Reply Like
  • LYogi
    , contributor
    Comments (2251) | Send Message
     
    just let the SP tank down to $6 again and get your costs under control, your product is great, all you need is time for word to spread.

     

    why this panic?

     

    do you hear me BOD??
    23 Sep 2013, 10:51 PM Reply Like
  • Ben Learner
    , contributor
    Comments (211) | Send Message
     
    @LYogi

     

    The only trouble is the BOD is in it. They would all have to be replaced.

     

    Nobody is representing the interests of the company, its workers and the shareholders.

     

    Bunch of crooks if you ask me.
    24 Sep 2013, 02:15 AM Reply Like
  • tiger8896
    , contributor
    Comments (627) | Send Message
     
    Now watch them ram this deal through by changing the proxy voting rules like Dell did. Dell got them to change the voting rules so that they only needed the majority of the votes cast to approve the deal instead of a non-voting share counting as a no vote.
    23 Sep 2013, 11:13 PM Reply Like
  • mikebator
    , contributor
    Comments (1241) | Send Message
     
    I just want the engineers to keep making BB10 and for BS to exit that glass tower with a lead parachute.
    23 Sep 2013, 11:31 PM Reply Like
  • Charles Moscoe
    , contributor
    Comments (1605) | Send Message
     
    Incredible act of tomfoolery. I can't believe I am reading this. BBRY shareholders ought to be outraged. This should tank tomorrow as the deal is unlikely to ever materialize and now a ceiling has been put on the share price of $9 in a BEST CASE scenario. Of course nobody will come in to "out bid" this phantom bid. That would be ridiculous.
    24 Sep 2013, 12:19 AM Reply Like
  • ciolan
    , contributor
    Comments (193) | Send Message
     
    “We wouldn’t put our name on the line and we wouldn’t do this unless we were very confident,” Watsa said from Toronto.
    24 Sep 2013, 01:38 AM Reply Like
  • Ben Learner
    , contributor
    Comments (211) | Send Message
     
    That is exactly phase three (see previous posts for phaes 1 & 2).
    Inside job.
    24 Sep 2013, 02:23 AM Reply Like
  • Charles Moscoe
    , contributor
    Comments (1605) | Send Message
     
    Clearly the market agrees with me and not Prem Watsa's "name" as it has dropped as much as 15% since I posted this.
    29 Sep 2013, 04:38 PM Reply Like
  • sfinvestor
    , contributor
    Comments (987) | Send Message
     
    Canada's Warren Buffet --- We'll put an investor group together and line up financing. Not putting any more cash into this.

     

    The real Warren Buffet --- I'll buy everything you have with X amount all cash, this is my one and only offer. Non-disclosure agreement signed.

     

    Canada's smartphone business. We'll show you BB10 in 2011 and deliver it in March 2013, one year later than promised. Everyone knows about your phone in Nov 2012 because everyone has seen, heard or talked about it.

     

    American smartphone business. Announce on Tuesday and unveil your product for the first time in full. Sell on Friday when it is fresh. Ka-ching 9M out the door in one weekend with back-up orders.

     

    Seriously, on Nov 2nd when BBRY emerge with no new buyer, what will stop the Fairfax consortium from saying we are not liking we are seeing after the due diligence report and offer $7 a share instead? If I was going to put serious money into this thing, I would demand another take it or leave it discount just because BBRY have no leverage and they are idiots.
    24 Sep 2013, 12:31 AM Reply Like
  • bud zeedee
    , contributor
    Comments (350) | Send Message
     
    We don't know what is going on. We don't know whether FFH wants to (a) buy the company; (b) hope its bid will be trumped by a superior one, thus enhancing value of FFH shares; (c) wants to pick up a bunch of money by walking away as a losing bidder; or (d) wants to lower-ball its existing low-ball offer on the basis of what it will claim are negatives disclosed by its due diligence.
    What we do know: the BoD has put itself in a precarious position by engaging in the Friday/Monday shenanigans. There is no way to justify a quarterly profit warning on the Friday a mere week before the scheduled report of the quarterly results; but the reason for it became clear on the Monday with the announcement of a bid that was obviously something the Board dealt with before the weekend. That is not a justification for its legitimacy. Just the opposite. The game is too-too obvious, and for that the members of the BoD will pay down the road. As a shareholder I will happily contribute towards a class-action suit against the members individually or severally, whichever the law permits, so that they are punished not just for their manifest incompetence, but for their
    apparent collusion.
    24 Sep 2013, 02:09 AM Reply Like
  • Ben Learner
    , contributor
    Comments (211) | Send Message
     
    +1
    24 Sep 2013, 02:27 AM Reply Like
  • Crispin_in_Waterloo
    , contributor
    Comments (1219) | Send Message
     
    The timing and price are fishy - surprisingly fishy. The write downs are taken as given by the market (tanking the stock), are obviously excessive and soon to be reversed after selling it to themselves.

     

    Is this legal??

     

    Options:
    The BoD can accept the offer but no forced sale by publicly traded shares.

     

    The company stays public with different BoD and shareholders.

     

    Or the company stays public on the TSX.

     

    The company goes private with a non-voting block of willing 'remainers' who do not accept $9 in trade for a stock worth twice that.

     

    Purposely devaluing the stock with trumped up losses and trumped down prospects impacting confidence then forcing out existing shareholders requires government intervention. There is a name for this type of behavior.
    24 Sep 2013, 04:01 AM Reply Like
  • apbd
    , contributor
    Comment (1) | Send Message
     
    Funny. BBRY pre announces last Friday when they didn't have to.
    Drives down the price of the stock. Then a former member of the Board with a large holding comes along on Monday and makes a questionable bid. Up and up? NOT!
    apbd
    24 Sep 2013, 03:57 AM Reply Like
  • sfinvestor
    , contributor
    Comments (987) | Send Message
     
    what's the difference, the end result will probably be the same. FFH already knew bad news was coming and will bid after that cat came out whether it was Sep 20th ot Sep 27th.
    24 Sep 2013, 04:00 AM Reply Like
  • DDSLT5
    , contributor
    Comments (8) | Send Message
     
    Agreed - I'd love to own a piece of BBRY privately. Bring it!
    24 Sep 2013, 05:28 AM Reply Like
  • czcarroll
    , contributor
    Comments (8) | Send Message
     
    Gordon Gecko looks like an amateur compared to these guys. There is skulduggery everywhere on this deal. If this happened in Russia , regulators in Europe and North America would shout fraud.
    24 Sep 2013, 06:26 AM Reply Like
  • Genesis Housing
    , contributor
    Comments (423) | Send Message
     
    It just smacks of desperation..PW doesnt know if can finance the bid and has little risk of making a bid as it 1) Might attract another bidder 2) Not putting in any more cash into the company, so has zero incremental risk from making a bid. My bet is fails to raise the finance for it
    24 Sep 2013, 08:17 AM Reply Like
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