For Telecommunication or North American Technology takeover BlackBerry Ltd (NASDAQ:BBRY) may be stuck with lowest value ever, once valued $83Billion.
Maker of Smartphone said yesterday that it reach a tentative agreement with the group led by its biggest shareholder Fairfax Financial Holdings Ltd. (FFH) with a possible buyout of $4.7 Billion.
Fairfax is offering $9 a share which an investor should be happy to get according to Pacific Crest securities. While for the other bids company has six weeks to seek. After almost a year of examining the potential buyers the company didn’t discloses the sale until the last month. And this is done by Thorsten heins (Chief Executive Officer) who took over in Jan.2012. BlackBerry Ltd. sales fell behind Google Inc. and Apple Inc. and now it posted the decline of the quarterly sales almost $79 of market value. BlackBerry Ltd. said that it will reduce its workforce and take a writedown estimation of $960Million.
10% of BlackBerry’s common stock are owns by Firfax. The name of the other members have not been discloses yet. Mike Lazaridis former co-CEO of the company, an inventor of BlackBerry has 5.7% stake in company are not included at this point, claimed by Prem Watsa (Fairfax CEO) during an interview.
BlackBerry Ltd (NASDAQ:BBRY) share fell 3.3% to $8.53 yesterday, and this is their lowest level of closing since last November. Because of its fading prospects BlackBerry Ltd. is going to form special board of committee last month. And for that they are evaluating all possible options like partnerships, joint ventures or an outright sale.
According to Doradha of William Blair it’s not possible for Blackberry to get higher offers from other suitors, other then Fairfox. Which means the best option they are going to get is $9 a share, said by James Faucette, a Portland, Oregon-based analyst at Pacific Crest.
Newspaper said yesterday that Fairfox news has great impact. And hence there are other parties still considering making a bid for BlackBerry reported by the Wall Street Journal.