It would be Cerberus's own offer. The Barron's blog is but a blurb on this, here's the original WSJ report:
BlackBerry Draws Interest of Cerberus
By SHARON TERLEP and DANA CIMILLUCA
Private-equity firm Cerberus Capital Management LP has expressed interest in BlackBerry Ltd., according to people familiar with the matter, as the smartphone maker seeks a buyer to rescue the company.
Cerberus is aiming to sign a confidentiality agreement that would allow it to access BlackBerry's private financial information, one of the people said. Cerberus, which specializes in distressed investing, may well opt against pursuing a bid, the person said.
BlackBerry in August announced a review of strategic alternatives, including a possible sale, following a dramatic erosion in the market share of its signature devices. That led last month to a preliminary deal to sell the company to Fairfax Financial Holdings Ltd. for $4.7 billion, or $9 a share.
Concerned the deal won't stick at that price, and reacting to another bleak financial report from the company, investors have driven down BlackBerry shares. They traded at $7.60 midday Wednesday, down about 4% on the day and some 15% below the Fairfax offer, but reversed course following the Journal's article about Cerberus's interest.
A BlackBerry spokesman declined to comment. "We do not intend to disclose further developments with the respect to the process until we approve a specific transaction or otherwise conclude the review of strategic alternatives," the spokesman said.
BlackBerry in a filing with the Securities and Exchange Commission late Tuesday acknowledged in more depth the challenges it is facing. The company said it expects to incur charges of $400 million through the rest of the fiscal year as part of a broad cost-cutting initiative that includes the previously announced reduction of 40% of its workforce.
Cerberus wasn't among the private-equity firms BlackBerry courted in recent months as it sought a buyer, according to people familiar with the matter. It is unclear who else besides Fairfax—if anyone—might come through with a bid for all or part of the company.
BlackBerry co-founder Mike Lazaridis, who is no longer with the company but according to recent disclosures held a 5.7% stake, is also contemplating a bid, a person familiar with the matter said. Mr. Lazaridis has previously held talks to join the Fairfax group and still may do so, this person said. Neither BlackBerry, Mr. Lazaridis nor Fairfax was immediately available for comment Wednesday.
The Fairfax bid is subject to a number of conditions, including the completion of an examination of BlackBerry's books. It also carries a roughly $150 million breakup fee, which BlackBerry could be liable for if it spurns Fairfax and sells itself to another party. BlackBerry agreed to the unusual set of terms in the hope that the move would put a floor under its sagging stock and help lure rival offers, people familiar with the matter have said.
Fairfax, which already owns a 10% BlackBerry stake and whose chief executive, Prem Watsa, is a former director of the company, had not lined up financing when its preliminary agreement was announced. That, and the precarious state of BlackBerry's business, has created anxiety among investors that Fairfax won't ultimately pay $9 per share for the company.
Still, the continued decline in BlackBerry's shares could help encourage bids from others, who may be drawn in part to the prospect of buying the company for a bargain-basement price. Should Fairfax lower its offer, another bidder could potentially swoop in without having to contend with the breakup fee.
Cerberus, known in part for its earlier acquisition of Chrysler Group LLC, kept a low profile for years, but lately has been in the mix on some headline-grabbing situations. It was in talks to join Best Buy Co. founder Richard Schulze in a buyout of the struggling retailer that never happened. Earlier this year, Cerberus agreed to buy grocery chain Supervalu Inc.
At least one other distressed-investing firm has also been sniffing around BlackBerry, according to another person familiar with the matter. It isn't clear who that is or if they're still interested.
According to the terms of its preliminary deal, Fairfax has until this week to deliver an initial draft of a merger agreement with BlackBerry. If it misses that deadline, its due diligence period, scheduled to last until Nov. 4, would be truncated.
source: BlackBerry Draws Interest of Cerberus - WSJ.com