BlackBerry Abandons Sale Plans, Will Replace CEO 83
An anonymous reader writes "BlackBerry has abandoned plans to sell the company to Fairfax Holdings after the shareholder could not raise enough money. CEO Thorsten Heins is to leave the company. From the article: 'The company also said that Prem Watsa, chairman and CEO of Fairfax, will be appointed Lead Director and chair of the compensation, nomination and governance committee. Mr. Watsa had resigned from the BlackBerry board earlier this year to explore a bid for the company.'"
Re:FTFS vs. FTFA (Score:4, Interesting)
IMO, Prem Watsa is just engineering the price of the stock down while freezing out other potential suitors with that "pays us 30cents/share if you sell to another" clause.
Friday BBRY was at $7.77. Watsa's offer *was* to buy it at $9.00. Today he says "he changed his mind" and then 9:30am, *someone* bought 2.5% of BBRY for $6.46. And tomorrow morning it will happen again. (just watch)
Watsa's Fairfax company is one of those predatory company that buys struggling companies, chops them up and sells the parts for more than the company was worth as a whole.
Mark my words: He will buy BBRY sooner or later and spin off BBM at a price that will cover the purchase price of BBRY as a whole.