1. codehut's Avatar
    Really interesting read: Does Fairfax Have Resources -- And Motivation -- To Close BlackBerry D - John Paczkowski - Mobile - AllThingsD

    Key quote:

    "Keep in mind, too, that the firm’s letter of intent includes a go-shop provision that entitles it to 30 cents a share, about $157.2 million, if BlackBerry attracts and accepts an offer better than the $9 per share Fairfax is offering.

    So, Fairfax, which doesn’t yet have the money to acquire BlackBerry, stands to make millions if someone else does. And for a company that bought big into BlackBerry in January of 2012, when the smartphone maker’s stock was trading between $15 and $17 a share — far above the $8.01 at which it closed Wednesday and the $9 Fairfax has offered — that’s likely an attractive outcome.
    In other words, the best-case scenario for Fairfax is one in which BlackBerry rebuffs its offer.
    "

    This lines us as well with the post Chris wrote earlier BlackBerry and Fairfax: What happens now? | CrackBerry.com

    And last I checked the share price was around $7. So this means in general the investment community has called the bluff.

    Thoughts?
    Last edited by codehut; 09-27-13 at 12:22 AM.
    09-26-13 10:27 PM
  2. grunt0300's Avatar
    Really interesting read: Does Fairfax Have Resources -- And Motivation -- To Close BlackBerry D - John Paczkowski - Mobile - AllThingsD

    Key quote:

    "So, Fairfax, which doesn’t yet have the money to acquire BlackBerry, stands to make millions if someone else does. And for a company that bought big into BlackBerry in January of 2012, when the smartphone maker’s stock was trading between $15 and $17 a share — far above the $8.01 at which it closed Wednesday and the $9 Fairfax has offered — that’s likely an attractive outcome.
    In other words, the best-case scenario for Fairfax is one in which BlackBerry rebuffs its offer.
    "

    This lines us as well with the post Chris wrote earlier BlackBerry and Fairfax: What happens now? | CrackBerry.com

    And last I checked the share price was around $7. So this means in general the investment community has called the bluff.

    Thoughts?
    You're kidding, right?
    09-26-13 10:43 PM
  3. JBML007's Avatar
    Lmfao...

    Thanks for the laugh

    Posted via CB10
    09-26-13 10:47 PM
  4. Dzyen's Avatar
    The lols are strong in this one..

    Posted via CB10
    09-26-13 11:06 PM
  5. SlcCorrado's Avatar
    I'd take $17 a share
    09-26-13 11:14 PM
  6. codehut's Avatar
    I don't get the joke? Chris Umi even linked to the very post talking about this. Did you guys read BlackBerry and Fairfax: What happens now? | CrackBerry.com

    Here's what Chris wrote: "If you want to understand more about this from a professional investment banker, I can’t give enough recommendations for Mark McQueen’s awesome blog post. Go read it. Mark is an incredibly smart Bay Street professional, and a guy I’ve had the pleasure of working with for several years at Yorkton Securities, where he lead the tech investment banking team. You won’t find too many guys with his level of expertise and familiarity with BlackBerry willing to write publicly about this proposed deal."

    And the blog post he linked to: Wellington Financial Blog – News, Views & Purviews - BlackBerry deal tests limits on M&A creativity

    And here's a quote from this post:

    "More importantly, unlike a “stalking horse bid” in a bankruptcy action, there is no BlackBerry bid today. There is no actual floor to the auction, as much as some commentators might claim. The current bidder isn’t stuck with the deal if no one else shows up to the party, unlike a true Stalking Horse proposal. There’s merely the premise of a bid in exchange for a break fee. And the premise of a bid existed immediately after Mr. Watsa stepped down from the BlackBerry board last month.

    One can understand why Mr. Watsa wanted to add some momentum to what appeared to be a lethargic auction. But an unfinanced LOI isn’t going to fool any serious buyer. I don’t think Microsoft will suddenly try to top him at $11/share. If they want the company, they now know they can buy it for in and around US$9.00 a share. The BlackBerry Board has telegraphed that figure. Perhaps that’s the new reality, but to think that’s the outcome for a company which was once (just like Nortel) the most valuable publicly-traded company in Canada.
    "

    I've even underlined the key sentence. The whole "bid" from Fairfax isn't real - it was just a ploy to try to draw out another bidder. All of this is fact, and supports the current share price being below the $9 bid as well. It's not a real bid. Investors believe it to be a ploy and will not actually go through.
    09-26-13 11:51 PM
  7. codehut's Avatar
    Also, one other thing to add. If you guys think this is a joke, the share price is currently $7.95. If you think the deal really is real, you can buy shares RIGHT NOW and then have them purchased off you for $9 and make an absolute killing. Seriously, I'm not even joking. You stand to make a lot of money on this (and inversely, the fact that BB is trading below $9 should signal alarms bells if you're even remotely intelligent)

    If you're confident the deal is real, and you think I'm a joker, I encourage you to post pictures confirming your share purchases. Because, you'd be a fool not to purchase now, right?
    09-26-13 11:59 PM
  8. Bluenoser63's Avatar
    Really interesting read: Does Fairfax Have Resources -- And Motivation -- To Close BlackBerry D - John Paczkowski - Mobile - AllThingsD

    Key quote:

    "So, Fairfax, which doesn’t yet have the money to acquire BlackBerry, stands to make millions if someone else does. And for a company that bought big into BlackBerry in January of 2012, when the smartphone maker’s stock was trading between $15 and $17 a share — far above the $8.01 at which it closed Wednesday and the $9 Fairfax has offered — that’s likely an attractive outcome.
    In other words, the best-case scenario for Fairfax is one in which BlackBerry rebuffs its offer.
    "

    This lines us as well with the post Chris wrote earlier BlackBerry and Fairfax: What happens now? | CrackBerry.com

    And last I checked the share price was around $7. So this means in general the investment community has called the bluff.

    Thoughts?
    You are joking right? If they bought the shares at 15-17 dollars and someone offered 10 and fairfax was outbid, then they would get 30 cents per share and still be out 5 to 7 dollars per share. They don't stand to make millions but lose much much more than that.
    09-27-13 12:06 AM
  9. knownastron's Avatar
    It's not certain one way or another.

    There is speculation that it isn't going through just like there is the word of Prem that the deal is real.

    Don't come in here saying that it's certain or 100% either way. The market seems to think that it isn't going through thus the $7.95 stock price.

    That's about all you can say. Get out of here trying to say you know for a fact.

    Posted via CB10
    09-27-13 12:06 AM
  10. codehut's Avatar
    You are joking right? If they bought the shares at 15-17 dollars and someone offered 10 and fairfax was outbid, then they would get 30 cents per share and still be out 5 to 7 dollars per share. They don't stand to make millions but lose much much more than that.
    You have to look at things from their POV. There is no interest and all that looms on the horizon is continued share losses. They've realised they're already going to lose. The point now is to minimize losses. And that's exactly what the 30c/share provision they added in has the potential to do, provided they get outbid. If they didn't do this, then all they would have is their shares purchased at $15-17 and the prospect that the price will quite literally go to zero as BB fails to attract any bidders.

    So they created a fake bid to try to stimulate activity and drive up interest, in the hope of recouping some of their losses. But as the various professional investors have all pointed out, nobody will likely fall for it.
    Cashgap and JeepBB like this.
    09-27-13 12:15 AM
  11. chtang's Avatar
    You are joking right? If they bought the shares at 15-17 dollars and someone offered 10 and fairfax was outbid, then they would get 30 cents per share and still be out 5 to 7 dollars per share. They don't stand to make millions but lose much much more than that.
    They get 30 cents on all of BBRY's outstanding shares. Since they own around 10% of the float, it's really more like an extra $3 per share on their holdings. They still won't break even, but it will greatly minimize their loss.
    h20work likes this.
    09-27-13 07:49 AM
  12. OzarkaTexile's Avatar
    It might be a ploy. Prem Watsa is not a disinterested party, so he stands to gain (or at least lose less) if BBRY can be sold.

    If there are no buyers, BBRY will quickly disintegrate and then the pieces will be sold. If someone buys now, they likely do so with the expectation of breaking up the company or at least exiting the handset and/or OS business. The prospect of a white knight investor breathing new life into BB10 is remote.
    09-27-13 10:26 AM
  13. grunt0300's Avatar
    You have to look at things from their POV. There is no interest and all that looms on the horizon is continued share losses. They've realised they're already going to lose. The point now is to minimize losses. And that's exactly what the 30c/share provision they added in has the potential to do, provided they get outbid. If they didn't do this, then all they would have is their shares purchased at $15-17 and the prospect that the price will quite literally go to zero as BB fails to attract any bidders.

    So they created a fake bid to try to stimulate activity and drive up interest, in the hope of recouping some of their losses. But as the various professional investors have all pointed out, nobody will likely fall for it.
    You are in denial. How do you set up, and create a "fake" bid. A false rumor, yes. A fake bid, no.
    09-27-13 10:45 AM
  14. m1a1mg's Avatar
    You are in denial. How do you set up, and create a "fake" bid. A false rumor, yes. A fake bid, no.
    It would take me about 5 minutes in M$ Word. There is nothing in the bid that stops FF from withdrawing. NOTHING!!
    JeepBB likes this.
    09-27-13 10:49 AM
  15. alan510's Avatar
    I guess we'll find out in early November if the OP is right. That's a fact. Everything else he has quoted/said has a healthy dose of conjecture, spin or both.

    Posted via CB10
    Going The Distance likes this.
    09-27-13 10:56 AM
  16. zzbsb's Avatar
    I don't know if the bid was a ploy or real one. But I do find the following 2 are fishy:

    1, Fairfax made the bid without the actual finance being fully lined up.
    2, All the negative news right before their bid.
    09-27-13 11:08 AM

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