That is interesting....
Fairfax said repeatedly $9 offer is firm and puts its reputation on the line. Mr. Market is irrational in the short term. That gives opportunity for the ones with courage.
TORONTO (Reuters) - Fairfax Financial Holdings Ltd Chief Executive Prem Watsa said on Wednesday he is confident the consortium he leads can find the money to fund its $4.7 billion bid for smartphone maker BlackBerry Ltd.
"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," Watsa said in an interview.
The Canadian-led consortium put in its $9 a share bid for BlackBerry on Monday, arguing that the troubled company would have better chances as a private entity, away from Wall Street's constant gaze.
"Short term these things fluctuate, there is speculation one way, there's speculation the other way," Watsa said of the movement in BlackBerry's share price. "We never pay too much attention to the marketplace."
He said Fairfax had never changed the terms of a deal in 28 year history and it is a firm offer and has more than needed backing.
Read the Watsa interview with Globe and Mall. Too many people want to join $9/share bid as equity partners. No wonder.. with 4.5B in real estate assets, 2.6B in cash plus between 2.6 to 4.5B in patents, they get about $20 for half the price.
Ellison, Bezos, Zuckerberg, Meyers and the like are gutsy and capable of making surprising bets
Hope they have something today as well.
Let the bidding war begin
It feels like something big is brewing
They get 5500 plus mobility patents, enterprise, high margin software and services and assets worth $16 to $20 for $12.. How can we rule them out.
In my opinion
For Patents and enterprise per SA
They still have 8.5Billion in Book value including 2.6B cash, about 3-4B in patents, 2-3B in buildings/property and BBM Inc likely to add to the book. Liquidation value at least 16 = Book.
Don't count anything out.
What do you think?
Let us see
This is a steal at 9. Governments around the world have multi years contact to buy Blackberry.
You can read Watsa interview yesterday again and again. How can you interpret any differently?
This is a no brainier. Even Fairfax can choose to invest if it wants as it has nearly 4B cash and Blackberry has 2.6B so between the two you got 6.6B if Mr. watsa wanted to. Most likely Lazaridis will join Watsa
I think the deal ill go through at a min of 9 i.e the fairfax...if not higher. That is about 8.5% in a month or 100% annualized