The black and white of BlackBerry Ltd (NASDAQ:BBRY)
There has been a lot of activity in BlackBerry Ltd (NASDAQ:BBRY) lately. The one major news that the company is open to a takeover bid to go private had fueled a lot of speculation. One major discussion doing the rounds is that the investors might just converge in an effort to prevent the company from moving away from Canadian hands. Four years ago the Nortel Networks failure had left the country shamefaced and they do not want a repeat of the same scenario.
The Watsa factor
Yesterday, the Ontario-based BBRY said that it is forming a committee that will consider various strategic alternatives such as partnerships, joint ventures or even an outright sale maybe. The company’s largest shareholder and Toronto businessman, Prem Watsa announced that he will be stepping down from the board. This is a strong indicator that he may play some role in salvaging the company.
If affluent Canadian investors are able to cohesively take the company private, it would be able to face its current challenges head on and make a triumphant comeback. The country’s largest pension funds may also be interested in an investment in the company. A local bid will also be more desirable to the regulators. It is their job to review any foreign takeovers to decide whether the Country will be benefited in any way.
Blackberry stock had climbed almost 1.00% in Wednesday’s trading and closed at $11.4/share. Seems like the buyout deal will definitely be a catalyst for the stock that has not seen bright days for a while now.
Pension funds interested
There have been some distinct interest signs from pension plan funds. Mark Wiseman, the CEO of the Canada Pension Plan Investment Board said that if BBRY decided to go private, he would consider an investment in it. This is the 2nd largest pension fund management firm in the country. Leo De Bever, the CEO of Alberta Investment Management Corp also made similar comments yesterday but added that it’s a little early in the day to make firm plans.