Originally Posted by
morganplus8 michaelshawn!!!
While you were asking the question, I was busy typing a response. Prem was given a crazy deal that you just don't see, I have never come across a breakup fee like this one in my career. He controls the fate of the company until Nov 4th and let's hope nothing beyond that date. There is no incentive for MSFT to step up and make an offer until Nov 4th passes. The same can be said for Mike L and the others. What does make sense is for everyone to sit on their hands and do nothing until Prem loses the rights to that dumb breakup fee. If it plays out well, Prem will drop the breakup fee, and the company itself will state the interests of others. MSFT would be foolish not to buy BlackBerry at this bargain basement price level. If Prem opens the door to others, you will likely see some heavy buying in the stock. The expectation is that Prem "fails" to get financing, the stock drops because the company will now go bankrupt, it is worthless, Prem will depart be selling his position, everything possibly negative that you can think of, the media will be all over this event, .................. and the stock goes up! Prem's offer is $ 1.6 - $ 2.1 Billion, less cash, that is peanuts for a company that has real estate worth that much today. I maintain, Book Value is where the company should be bought out at. Nothing less than that makes sense, just ask Mikey.
Prem needs to finance $ 4.7 B minus cash minus his owned stock, that is no money at all. He could be in talks with MSFT, Samsung and others to get his commitment to offer up his shares at $ 13.00 - $ 17.00/shr plus the breakup fee. Who knows what deals are being made behind closed doors. I think Mike needs at least BV to get out, most of us do too, Prem is slightly better off right now with the breakup fee. At $ 16.50/shr, minus cash, MSFT would only have to pay $ 5.5 B to own it all, ECC, BBM-X, Patents, Real Estate, BES 10.1, BB 10.2 ..... 24 million in handset sales. This is a huge list of assets for less than what they paid for NOK handsets alone. Don't be fooled by the price of the stock!!