[birdman_38]

If BlackBerry ends up selling, are they obligated to sell to the highest bidder and maximize the return for shareholders? Or can they choose they best fit, even if the bid is lower?

Do you think they would proceed with the best interests of their users as a priority?

[z10fido]

I don't think there are "bidders". Just one group.

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[birdman_38]

I don't think there are "bidders". Just one group.

Not sure I understand what you're saying

[Troy Tiscareno]

He's saying that he believes that, at best, there is only a single group of investors with any serious interest in BB, and that group would presumably include Watsa/Fairfax. I agree. I don't thing the BoD will need to worry about deciding between multiple bids, because I doubt there will be multiple bids. It's still far from certain there will be ANY bids for the company as a whole.

[birdman_38]

He's saying that he believes that, at best, there is only a single group of investors with any serious interest in BB, and that group would presumably include Watsa/Fairfax. I agree. I don't thing the BoD will need to worry about deciding between multiple bids, because I doubt there will be multiple bids. It's still far from certain there will be ANY bids for the company as a whole.

Thanks. That still doesn't answer my original question though. If BlackBerry is presented with a bid for, say, $15 a share which would phase out the consumer brand, BIS, etc or one for $12 a share that would grow the platform and maintain services...and they choose the latter...would shareholders be pissed?

[Troy Tiscareno]

Impossible to say. In a case where there was more than one bid, shareholders would vote, and there would have to be agreement from 3/4 of the outstanding shares. That would be enough to force the remaining 1/4 (i.e., all the low-volume shareholders) to accept the majority vote.

[ccbs]

They better take the highest bid. As a shareholder, it is now all about the buyout price.

[z10fido]

Yeah the only problem is the wolf was in the henhouse. His concerns are his fund members. Thor and Co are already covered. They don't care about retail.

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[birdman_38]

They better take the highest bid. As a shareholder, it is now all about the buyout price.

It'd be interesting to know if that's the sentiment of most of the shareholders.

[FFR]

It'd be interesting to know if that's the sentiment of most of the shareholders.

Shareholders primary concern is ROI.

[Dunt Dunt Dunt]

Thanks. That still doesn't answer my original question though. If BlackBerry is presented with a bid for, say, $15 a share which would phase out the consumer brand, BIS, etc or one for $12 a share that would grow the platform and maintain services...and they choose the latter...would shareholders be pissed?

IF more than one offer were made, there isn't going to be any type of stipulations as to what the buyers would do with the company or it's assets. There maybe some discussions about it, but they aren't going to be anymore binding than "BB10 is coming to the PlayBook" was.

As for shareholders being pissed... yes there will be a number of them that will be VERY pissed - I bet there are people that bought a few years ago and held on even as it fell, or even some who bought back when it was around $15 might not be too happy with the outcome. But the fact is the majority rules. So the question is WHO are the majority - are we talking several million investors, or just a few big players that will make the decisions for all.

I bet that even Prem isn't going to cover his losses when it comes to the stock value alone - where is he now an average of $18? But he'll make it up as part of the new owners, selling off BBRY assets to the highest bidder. But that is only IF he can buy it cheaply enough... so don't count on him being investors knight in shining armor.

[bk1022]

If there is more than a single bidder, then shareholders would vote on all serious offers. Such a situation is very unlikely. Multiple takeover offers overlapping each other is not a common occurrence for public companies. Why? Because if you own 10,000 shares of BB, you are going to take a buyout offer of $13 instead of $12.50. You stand to make $5K. Imagine if you own 100,000 or a million shares?

If the $13 offer comes with the stipulation that they are going to light BB's facilities on fire for fun, you will still sell for $13 instead of $12.50. Overlapping offers can happen when the buyouts are not entirely in cash (ie, the offer includes stock from the buying company)

[dusdal]

I don't believe they have any obligations at all. They (shareholders) can reject or accept any offer based on any criteria.

Having said that the highest $$ offer is most likely to gain majority vote.

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