Who Will Win the Bidding War for BlackBerry?
Cyberus Capital Management LP is considering joining up with Mike Lazaridis and Doug Fregin — co-founders of BlackBerry (NASDAQ:BBRY) — in a bid to buy the company. November 4 brings with it a deadline for all buyout offers, putting a tight schedule on any joint agreement according to the Wall Street Journal. Lazaridis and Fregin announced their intentions last month, and own 8 percent of BlackBerry in combination.
Others involved in bidding for the company include Fairfax Financial Holdings Ltd. (FRFHF.PK), which owns a 10 percent stake in BlackBerry. Fairfax’s preliminary offer has yet to be finalized, but was at $9 per share, and $4.7 billion overall back in September. Also involved in bidding is the Chinese company Lenovo Group Ltd. (LNVGY.PK) — according to reports from people familiar with the matter.
An agreement between Cyberus and the two co-founders could give both the extra financial boost they need in their bid, according to the Wall Street Journal, and would take out some competition simultaneously — stock price movement seems to indicate that investors don’t think a $4.7 billion deal is realistic. Stock was trading at $7.75 on the Nasdaq Stock Exchange on Friday, leaving the market value of Blackberry down at $4 billion.