[Corbu]

https://www.engadget.com/amp/5g-blac...175112005.html

The 5G BlackBerry could be 'the most American-made phone out there'
OnwardMobility wants its first phone to be a super-secure "global flagship."

Plus CrackBerry podcast:
https://crackberry.com/crackberry-po...ard-blackberry

[rarsen]

General interest security information:

University of Utah pays $457,000 to ransomware gang
https://www.zdnet.com/article/univer...&cid=716503125

[Redzinaldas]

https://www.techradar.com/news/the-u...illing-feature

The upcoming QWERTY BlackBerry 5G smartphone might have one killer feature

[rarsen]

Other general news:

Exclusive: Businesses are crystal clear about cyber risk, but still ill-equipped to handle it
https://www.techradar.com/news/exclu...d-to-handle-it
In the last two weeks alone, for example, both health giant Garmin and camera manufacturer Canon have fallen victim to damaging ransomware attacks. Beyond the threat of financial penalties issued by data protection watchdogs (which can reach millions of dollars depending on the severity of the incident and size of the business), almost half (42.30%) of those surveyed also said superior cybersecurity capabilities would make their company more profitable in the long run.

[Dunt Dunt Dunt]

https://www.techradar.com/news/the-u...illing-feature

The upcoming QWERTY BlackBerry 5G smartphone might have one killer feature

"Therefore, if at some point the US government and its allies in Europe decide not to use smartphones made in China for sensitive communications, this is where OnwardsMobility and FIH Mobile may win big. "

Guess they are forgetting about the already number one Android player in Enterprise.... Samsung. Already has the most secure Android software hardening with KNOX and includes some security hardware in some unique security chips.

And then there is the just number one player in Enterprise.... Apple, who has worked with Foxconn to greatly diversify the Apple supply chains and manufacturing locations.

[cgk]

"Therefore, if at some point the US government and its allies in Europe decide not to use smartphones made in China for sensitive communications, this is where OnwardsMobility and FIH Mobile may win big. "

Guess they are forgetting about the already number one Android player in Enterprise.... Samsung. Already has the most secure Android software hardening with KNOX and includes some security hardware in some unique security chips.

And then there is the just number one player in Enterprise.... Apple, who has worked with Foxconn to greatly diversify the Apple supply chains and manufacturing locations.

Also - does not go with Global Flagship - "made in America" is a great play for a certain audience... in America - it means less than nothing anywhere else.

[Dunt Dunt Dunt]

Also - does not go with Global Flagship - "made in America" is a great play for a certain audience... in America - it means less than nothing anywhere else.

But Onward isn't making a global play.... pretty much NA and Europe. Reality is that is where most of BlackBerry's Enterprise business is.... they might have sold a lot of hardware to Africa, SA and Asia a decade ago, but their software business never expanded the same.

My guess is BlackBerry's Enterprise Software subscription will be a part of this phones... usability.

[cgk]

But Onward isn't making a global play.... pretty much NA and Europe.

they might want to stop talking about a Global flagship - it's all looking a bit confusing already:

It's a global flagship that will appeal to the made in american group that is made for corporations but is not focused on security as a killer feature but productivity and is also going to appeal to consumers - so it's a phone for everyone everywhere for everthing... but with a keyboard.

I don't know about North America but Europe is a very tough market because of the sheer range of off-contract devices you can get with decent spec for pocket change.

[EchoTango]

I did watch the entire podcast with the historical participants and the CEO of Onward Communications, Peter Franklin. It was also nice to see the old gang together, especially Kevin. Too bad his play to support TCL blew up in his face.

In my view, this will require Onward to "thread the needle" with a device that meets all the high security needs of the regulated market and leverages all of Blackberry's much touted security tools and expertise while keeping the device fully featured to make it still desirable to the average user. If I was Peter Franklin, I'd focus all my resources on creating the ultimate corporate device and treat the consumer market as a bonus or at best a sideline. No consumer is going to order 500+ devices, but enterprise customers will. Trying to appease consumers fickle needs will only serve to dilute the device into a confused and unfocused product, much like the Key one/Key two.

I'd especially contact the CEO of BOA who was recently quite adamant (see the video) that an enterprise specific device would definitely be purchased by BOA to address the disasters created by BYOD. I'm sure there are other CEO's who feel similar pain. This has always been Blackberry's strength (B2B) and when they tried to be a consumer product provider, well we all saw how that went.

[Redzinaldas]

https://www.prnewswire.com/news-rele...301116230.html
BlackBerry Teams Up with Desay SV Automotive to Enable an Intelligent and Safe Driving Experience for the new Xpeng P7 - a Leading Level 3 Autonomous EV

[LTbb]

https://www.prnewswire.com/news-rele...301118182.html

Someone is concerned. What's your view @Chuck Finley69 ?

[Dunt Dunt Dunt]

Well at least now we know what Chen's hopes for the rest of the year are resting on. He knew about the 400 unit order of new BlackBerry phones for BoA and that they had a new partner that will sell..... hundreds if not thousands of BlackBerry phones.

[Chuck Finley69]

https://www.prnewswire.com/news-rele...301118182.html

Someone is concerned. What's your view @Chuck Finley69 ?

That exactly what I’ve been saying can happen again.

If the case ends similarly, Fairfax makes out far more with it’s select few exclusive partners then everyone including minority shareholders.

I’m pretty sure that Fairfax has done the math and learned from the it’s previous mistakes. The only thing previous case did was change minority shareholders pricing. The share price of Fibrek has been knocked down so low, it didn’t matter.

I’m looking for typos but I read company valued $1 billion USD+ and minority shareholders receive $10 million USD+ so.....

Minority shareholders received twice the acquisition price but it was like driving the price down of BB to $1/share and being forced 7 years later to pay $2/share.

[Dunt Dunt Dunt]

That exactly what I’ve been saying can happen again.

If the case ends similarly, Fairfax makes out far more with it’s select few exclusive partners then everyone including minority shareholders.

I’m pretty sure that Fairfax has done the math and learned from the it’s previous mistakes. The only thing previous case did was change minority shareholders pricing. The share price of Fibrek has been knocked down so low, it didn’t matter.

I’m looking for typos but I read company valued $1 billion USD+ and minority shareholders receive $10 million USD+ so.....

Minority shareholders received twice the acquisition price but it was like driving the price down of BB to $1/share and being forced 7 years later to pay $2/share.

Next thing you know... conspiracy theories about Prem pushing Chen to overspend on Cylance was a strategy to move along this slow moving decline. Had to get all that cash out of the picture.

[Chuck Finley69]

Next thing you know... conspiracy theories about Prem pushing Chen to overspend on Cylance was a strategy to move along this slow moving decline. Had to get all that cash out of the picture.

While it’s not a conspiracy, it does explain paying all cash for Cylance instead of a share/cash mixture that would have better constrained the Cylance execs and forced better near term performance.

[EchoTango]

With the markets approaching all time highs, Blackberry continues to bounce along at close to recent lows.

This debt refinancing has exposed a side deal that Fairfax wants which seems to help enable a purchase option with only a marginal further share purchase. Speaking for myself, I was not aware that a 20% share ownership would allow for full control and not the presumptive 51%. Suddenly, Fairfax's existing 9% and the convertible debentures look like stepping stones to a takeover. Many have previously pointed this out as Fairfax's ultimate goal, however with only 9% of the shares, this possibility seemed much further away. I suppose the realization that a leopard doesn't change its spots is faint consolation and so this recent revelation shouldn't be all that surprising.

One has to wonder out loud if any of these ownership maneuvering isn't in part causing the anemic earnings and if an intentional devaluation is underway. The quarterly earnings calls do seem to celebrate a zero profit result.

[Dunt Dunt Dunt]

One has to wonder out loud if any of these ownership maneuvering isn't in part causing the anemic earnings and if an intentional devaluation is underway. The quarterly earnings calls do seem to celebrate a zero profit result.

Still think this a result of Chen's failure to "really" turn things around, and not a purposeful case of let's crash this thing into a tree so we can get it at a discount.

But Chen didn't have much to work with.... what BlackBerry is today, is mostly new stuff he bought. But the software market in automotive is moving toward open solutions. And UEM/Security is better handled by larger companies at this point.

What Chen really missed on... was selling BlackBerry for a profit. Problem is Prem was in it for too much...

[rarsen]

In reference to Redzinaldas identified BB article on Aug 24 including Xpeng:

Another Electric Car Maker Is Going Public. What You Need to Know About Xpeng.
https://www.marketwatch.com/articles...more_headlines
EV stocks are on fire. EV stocks Barron’s tracks are up roughly 250% year to date, far better than comparable returns of the Dow Jones Industrial Average and S&P 500. The 2020 gains, however, are only part of the story. Many EV makers have raised billions this year as investors’ thinking about the future of EVs has shifted.

[Chuck Finley69]

That exactly what I’ve been saying can happen again.

If the case ends similarly, Fairfax makes out far more with it’s select few exclusive partners then everyone including minority shareholders.

I’m pretty sure that Fairfax has done the math and learned from the it’s previous mistakes. The only thing previous case did was change minority shareholders pricing. The share price of Fibrek has been knocked down so low, it didn’t matter.

I’m looking for typos but I read company valued $1 billion USD+ and minority shareholders receive $10 million USD+ so.....

Minority shareholders received twice the acquisition price but it was like driving the price down of BB to $1/share and being forced 7 years later to pay $2/share.

Put a frame of reference also though. Press Release from the plaintiff which shouldn’t really be necessary.

[FeitaInc]

Put a frame of reference also though. Press Release from the plaintiff which shouldn’t really be necessary.

That press release was a compelling read. Wonder what they outcome will be. I didn’t know that the debenture wasn’t redeemable for BB. That’s a very strange for JC to agree on given that the coming quarter was “almost in the bag”.

[Chuck Finley69]

That press release was a compelling read. Wonder what they outcome will be. I didn’t know that the debenture wasn’t redeemable for BB. That’s a very strange for JC to agree on given that the coming quarter was “almost in the bag”.

I mentioned some things when first announced. BlackBerry Limited appears from the different parties at table, seemed to do a better job from arms length transaction perspective this go around. Different lawyers and investment bankers.

The reason for timing is that BlackBerry is somewhat on the ropes and it's ownership stake isn't concentrated. Some of it's allies have no affiliation with Fairfax but just seek to profit once the minority shareholders are eliminated.

There's nothing illegal as long as proper valuation is done. Fairfax and Prem will get better with each company takeover as this happens.

By doing press release, and once more, like every other great press release, the professional money already figures shares are priced appropriately.

The dissenting minority shareholder just fired his only bullet that I can see. What happens next if Prem does nothing or pulls his offer to restructure debt just like when offer to purchase company was pulled?

Minority shareholders are using simple game of checkers strategy when the opponent has been playing complicated game of chess.

How many people are now realizing Prem and Fairfax are opponents now?

[W Hoa]

BlackBerry shareholder asks regulators to order vote on refinancing that could allow Fairfax to take control

Dorsey Gardner, a veteran securities analyst from Florida who says he owns about five million BlackBerry shares, is warning that the terms of the new notes would make it more enticing for Fairfax to convert its new notes to equity – adding an additional nearly 13 per cent to its stake, potentially giving it a controlling share of more than 20 per cent.

https://www.theglobeandmail.com/busi...n-refinancing/

[Dunt Dunt Dunt]

BlackBerry shareholder asks regulators to order vote on refinancing that could allow Fairfax to take control

Dorsey Gardner, a veteran securities analyst from Florida who says he owns about five million BlackBerry shares, is warning that the terms of the new notes would make it more enticing for Fairfax to convert its new notes to equity – adding an additional nearly 13 per cent to its stake, potentially giving it a controlling share of more than 20 per cent.

https://www.theglobeandmail.com/busi...n-refinancing/

Veteran Securities analyst..... that owns five million BlackBerry shares, and is willing to admit it? Wonder where is average is sitting right now?

Don't have a Globe subscription to read that article, assume it's much the same as the PRN link a little above this.

I think it's good that Gardner is shining a light on this, so that all understand what's most likely going on. Not sure it will mean anything if BlackBerry is failing... but it's good to know where you stand.

[Chuck Finley69]

Veteran Securities analyst..... that owns five million BlackBerry shares, and is willing to admit it? Wonder where is average is sitting right now?

Don't have a Globe subscription to read that article, assume it's much the same as the PRN link a little above this.

I think it's good that Gardner is shining a light on this, so that all understand what's most likely going on. Not sure it will mean anything if BlackBerry is failing... but it's good to know where you stand.

Not just analyst. Dorsey Gardner was a fund manager at Fidelity back in the Peter Lynch era.

Unfortunately, shining the light wasn’t really needed in the institutional community. He’s a minority shareholder in the sense that he’s not part of the Fairfax consortium. Merely another opponent claiming to be a white knight but I don’t think he really is. Kelso Management has been a Fidelity ally in the past and Fidelity positions are many times part of consortiums with Fairfax or similar companies.

Fairfax, Kelso, Fidelity and Ontario pension system have a job to look out for their clients BlackBerry holdings. If small individual shareholders ride along, or get run over doesn’t really matter to any of them.....

[Rice Dawg]

Here's the Globe article:

A long-time BlackBerry Ltd. minority shareholder has asked regulators to require shareholder approval of a debt refinancing that he says could allow Prem Watsa’s Fairfax Financial Holdings Ltd. to gain a controlling stake of the company.

The Waterloo, Ont., data-security company said in a press release on July 22 that it planned to refinance US$605-million of convertible 3.75-per-cent debentures by Sept. 1, ahead of their November maturity date. Fairfax would exchange US$500-million worth of these for new three-year-term 1.75-per-cent notes, while another unnamed institutional investor would fund US$35-million of the new notes.

Dorsey Gardner, a veteran securities analyst from Florida who says he owns about five million BlackBerry shares, is warning that the terms of the new notes would make it more enticing for Fairfax to convert its new notes to equity – adding an additional nearly 13 per cent to its stake, potentially giving it a controlling share of more than 20 per cent.

Earlier this summer, Mr. Gardner approached the Ontario Securities Commission, the New York Stock Exchange and Toronto Stock Exchange operator TMX Group Ltd. to force BlackBerry to seek approval from disinterested shareholders in order to proceed.

The refinancing was first proposed in late June by Mr. Watsa, the chief executive of Fairfax and BlackBerry’s lead director. The company said Mr. Watsa did not take part in negotiations over its details. In a second press release on Aug. 21, BlackBerry said its board and audit and risk management committee approved the new debt issue without minority shareholder approval, because of an Ontario regulation that exempts transactions from such approvals if they are worth less than a quarter of the company’s market capitalization.

On June 30, BlackBerry’s market cap was about US$2.85-billion, a quarter of which is US$713-million; the proposed US$500-million transaction with Fairfax falls below that.

Ralph Shay, a long-time securities lawyer who has been a TSX executive and OSC director, said in an interview that in such a dispute as Mr. Gardner’s, the exemption regulation is a key factor determining whether a vote might be triggered. “If the company can establish that the value of the transaction is under 25 per cent of the market capitalization, then they’ve got that exemption,” Mr. Shay said.

While regulators have discretion to take action if they are concerned, such as a putting a cease-trade order on the transaction until there is a vote, he said, such a move is rare if a company meets the requirements for the regulatory exemption.

However, Mr. Gardner’s lawyer, Brett Seifred of Davies Ward Phillips & Vineberg LLP, said in an interview that the exemption should apply to the combined value of two transactions – both redeeming the original debentures and offering the new notes – which would be worth north of US$1-billion, more than a quarter of BlackBerry’s market cap.

“Why is BlackBerry fighting so hard not to provide shareholder approval?” Mr. Seifred said. “If this is such a good financing deal for the company, and it’s the best they could find, why are they loath to provide the opportunity for disinterested shareholders to have their say on the transaction?”

Mr. Seifred said that in his client’s view, under Toronto Stock Exchange rules, shareholders should have the right to approve the debt transactions because, among other reasons, the new convertible notes could materially affect control of the company, including because of their lower conversion price.

In a press release, Mr. Gardner also said he was concerned that “no actual market check was conducted with regards to financing alternatives.”

In an e-mailed statement Wednesday, BlackBerry spokesperson Karen Clyne said that Mr. Gardner’s concerns are “incorrect in numerous respects,” including that “the refinancing will not materially affect control of BlackBerry,” and that the company’s board did consider an alternative financing option before proceeding. Fairfax did not respond to multiple comment requests.

The OSC said it received Mr. Gardner’s complaints but was unable to comment to avoid affecting the market and to ensure fairness in the complaint process. The TSX and NYSE said they do not comment on individual companies.

BlackBerry acknowledged on Aug. 21 that the transaction would give Fairfax control of 20.3 per cent of shares on a partially diluted basis – but it also said that the new securities would include “blocker” language that would limit Fairfax’s ability to convert debt to equity so that it could only obtain 19.99 per cent control.

BlackBerry also cited a new regulatory exception granted by the NYSE until Sept. 30 that waives the need for shareholder approval for some securities issuances if they are necessary under pandemic circumstances.

The conversion price of the 1.75-per-cent debentures to equity would be US$6 a share, about a 25-per-cent premium atop BlackBerry’s late-July share price, compared with US$10 a share for the original 3.75-per-cent debentures. Mr. Gardner said that the “dramatically reduced” price increases the likelihood of Fairfax strengthening its control of BlackBerry equity.

In its press release, BlackBerry chief executive John Chen said the refinancing would reduce the company’s interest expense by more than 58 per cent and give it greater liquidity.

Fairfax owned about 8.4 per cent of BlackBerry’s outstanding shares on a non-diluted basis as of July 21, the company said, and would control about 16 per cent of common shares if the 3.75-per-cent debentures were converted to equity. But if the refinancing were to go forward, Fairfax could control 20.3 per cent of shares on a partially diluted basis – though the “blocker” clause would effectively prevent that control from surpassing 19.99 per cent.

Mr. Gardner is also concerned about details omitted from the initial July 22 press release – including that the Fairfax shares converted from the new debt offering could total 20.3 per cent control of BlackBerry, and the “blocker” provision that would prevent that – arguing that BlackBerry only provided crucial details a month later, after his complaint.

BlackBerry’s market capitalization was US$2.82-billion after markets closed Thursday. Fairfax offered US$4.7-billion to buy the company in 2013 as BlackBerry struggled to reinvent itself after losing much of its ground in the smartphone market. Though the effort faltered, Fairfax later led a US$1-billion private placement of convertible debt in the company, and has remained a significant shareholder.

In June of this year, the website Street Insider reported that BlackBerry and Fairfax had discussed Fairfax taking over the former data-security company, though neither company confirmed the discussions.

BlackBerry said that the new 1.75-per-cent debentures would not be redeemable by the company prior to maturity, which Mr. Gardner said gave Fairfax a “fait accompli” in acquiring an additional 13 per cent of the company while diluting minority shareholders. The details revealed Aug. 21, including the “blocker” clause, Mr. Gardner said in his press release, were an attempt to “sanitize” the transaction.

Mr. Finley is correct in that Dorsey Gardner is not some do-gooder white knight. He ran several offshore activist hedge funds backed by Fidelity and was quite aggressive in his tactics (to mixed results). Some good background here:

https://www.nytimes.com/1991/01/27/b...agent-man.html