He can sell a portion of the company after, or provide a line of credit through FFH or whatever....im just stating that if he really wants to he can do it!
They are both right!
As a bank, your only upside is the interest and you stand to lose the capital. Even if there is a blackberry turnaround and stock goes to 20-30-100$....they won't get any of it. So why would anyone invest a billion in a unguaranteed situation for a few points...
Maybe some parts are already agreed to be sold off....like say BBM to FB. that would bring in the money needed and the rest from bridge loans and Lazaridis shares.
Also Lazaridis didn't buy up more shares to do nothing. he either has a bid ready, and if didn't get it together he will join up w Watsa.
Look at FB business and the timing, I think they went over to shop BBM, see if they can sell them BBM.
BBM falls right in their area, they can buy it and set up the mobile ads, plus the rate at which new users signed up (20M+ in a week!) makes it look interesting!
Ok here's a guess:
1) BBRY knows it will can sell itself for 12-13$.
2) They knew this before shareholders meeting so they made Heinz that 55 million package, to take care of him as he will probably not be needed anymore when sold.
2) Prem Watsa owning 10% doesn't like the sell price because it will represent a loss seeing his cost is 17$.
3) Without Watsa's 10% deal might not get enough votes to pass, so you need to take care of Watsa also.
4) He puts in a much lower offer and adds the 30 cent penalty ...which is like adding 3$ in value to all his shares.
5) So when the offer is made official, let's say 13$ , Watsa gets 16$..and can live with that.
It's a way to get management and the biggest shareholders approval to sell!
Also , Watsa is confident about getting the financing for his 9$ deal because he knows he doesn't have too!
Ive been long at 6.95 over a year ago! Sold some at 12 after June 28th...bought back at 8.20 and 7.55...covered called them at 9 bucks..if you must know!
Things could've been better, made 1 mistake on this 1 10 months ago...oh well!
Really ? Did you just deduct the Billions that they awarded in value by the 7$ target price and came out with an irrelevant 3.25$ figure????
If you ever have enough money to buy a business...make sure you get one full of debt not full of cash!
And they aren't gonna burn anything, they are not selling to consumers, they will keep the profitable, cut the losses get rid of the excess employees and end the supplier contracts ..that's what the 400M is for!
If Cerebrus or another buyer is interested in making a bid, they will first purchase a bunch of shares at the current cheaper market price!
So big on the lookout for big volume spikes that shoot the shares up in temporary spurts! This will be the tell!!!
Yeah , no one wants that tiny iphone, so now they'll leave him alone instead of trying to steal it! Good Move!
That's a great move....didn't see it before! You should do it yourself!
Buy a stock, then convince people to short it so it goes down more!
Your a genius!!!!!
Say your Cerebrus and you like what you see....there is a bid at 9$ with a 30 cent penalty....so whether you think BB is worth 12 or 15$.....you will bid in the 9.50-9.75$ range....gotta maximize!
But if there are other parties, you might come in higher just to discourage getting outbid and creating a price war!