Sep 24


BlackBerry has agreed to a “letter of intent” to be acquired by Fairfax Financial, in a potential deal worth $4.7 billion or $9 per share. Fairfax Financial’s primary business is insurance. Fairfax’s CEO, Prem Watsa, was on the BlackBerry board of directors until he resigned from the position last month. The deal is far from complete and Blackberry is free to look for higher bids.

From The Globe and Mail:

“BlackBerry has fallen on hard times recently, but we have every confidence it will be successful again,” Fairfax CEO Prem Watsa said in an interview.

[…]

Mr. Watsa said that a significant amount of the equity in the deal will come from Canada. There are no strategic players, or other technology firms, in the consortium.

“If the right strategic investor comes in we’d consider taking them as a partner in this company,” Mr. Watsa said. “We’re looking at any possibility for the good of the company, its customers and its employees.”

BlackBerry shares had been halted because of the news, but last traded at $8.23 a share. The stock traded near $15 as recently as July.

Source [Macrumors]

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