Instead of $9 in cash, offer 1 share of Fairfax for every 40 shares of BBRY or $10.50/bbry share. Fairfax is trading at 420. Make it all shares. offer means deal needs no financing because it is all share offer.
That is possible i.e. 11+. May be 11 to 14. This week and next week the behind the scenes bidders could surface.
9 (Fairfax) - 9.70 (Lenovo) - 10 (Qualcom/Cerb/Mike*Doug ..bidding process at work?
Then you have the big guys Google, Apple, Microsoft, FB, Orcl, Intc, IBM, Samsung etc..with 250B+ in collective cash and they can come in in the last minute and scoop the whole thing for 500M more than the highest bidder. So there is chance this thing can finally go for 10 to 11. What do you think?
That would be fair. Create BBM Inc and issue 1 share for every BBRY share and give 1 share for every BBRY share to shareholders. Eventually BBM Inc will be worth at least $10 on its own, imo.
Sounds pretty firm tone
I think Fairfax will come through on Monday.
Long overdue that this trades above 9
Watsa said: "We wouldn’t put our name to such a high-profile deal if we didn’t feel confident that at the end of the day that our due diligence would be fine and we’d be able to finance it."
Some time in 2014 they could be setting the next 5 to 10 year EPS goal.
The price behavior says market is convinced about Fairfax deal as well. It has rallied from the lows steadily to 8.40 and I wouldn't be surprised to see it end the week closer to 9. Next Monday after the def. 9 dollar deal, it could hover around 9 for a few hours/days and then could jump above 9 as activists or other suitors come in. Interesting action could happen between def deal and shareholder vote, that is when hedge funds, activists, etc.. could come in.
I am just stating what Mr. Watsa has said..."If we didn't think we didn't have the financing, we wouldn't enter into an offer"..something like that he said ...
I think Fairfax has fully secured the funding. Putting its 28 year history and credibility on the line. $9 definitive deal is done. Just before Monday or between the Fairfax $9 deal and shareholder vote we could see a lot of action from alternate bids and activists. If not it goes to shareholder approval and gets approved..., imo
Nov is date of definitive offer. When will the shareholder vote be? When will shareholders get the cash?
Only 5 days left to know. Options reflect a higher bid chance
Also it seems to have the stickiness with consumers. If it can grow to 1B in two years then it could more than double, right?
5. John Scully
10. Canada Pension/banks
Other possible: Microsoft, Samsung, Intel
$260 in 2014: IBM could trade again at 13X forward earnings next year or $20 in 2015 * 13 = 260
Again, I think Fairfax, Mike Laz/Doug, Canada Pensions/Banks will team up with likely technology partners among Lenovo, Google, Microsoft. Unknown is Cerberus..with they make their own unique higher bid or join Fairfax or may choose to do nothing...exciting two weeks ahead, imo
I think some big news could come with the bidding wars escalating...imagine someone like Icahn announcing that he now holds x% of shares and wants to control the board..OR imagine Microsoft or Amazon coming out saying they have a $12-14 all cash or stock offer.