Anyone else out there?
BlackBerry’s shares received a much-needed fillip on Nasdaq last night (2nd October 2013) after reports that another potential bidder had emerged to buy the struggling manufacturer. Although a consortium led by Prem Watsa’s Fairfax Financial has already been given the nod to buy the company for a tentative $4.7 billion (£2.9 billion), the Reuters news agency claimed that a rival bid may now be submitted by private equity group Cerberus Capital Management. The news sent BlackBerry’s shares up about 1 per cent, reversing an earlier 5 per cent fall.
But, at around $8, they are still well below the $9 thought to have been put on the table by Watsa, a former director of BlackBerry. Meanwhile Cerberus refused to comment, though it’s already thought to have signed a confidentiality agreement with BlackBerry giving it access to vital financial information.
Other bidders could still emerge from the woods and may be waiting to see at how low BlackBerry’s share price settles at before making their move.
Lenovo, IBM and Microsoft (see our story here) are among those who’ve named as possible buyers in the past.
Before the news of a possible bid from Cerberus yesterday, BlackBerry’s share price was continuing its downward trajectory after it confirmed that it expects to incur charges of $400 million through the rest of 2013 as it slashes costs which includes a 40 per cent reduction of its workforce.