Will Cerebrus Takeover BlackBerry Ltd (NASDAQ:BBRY)?

Posted by Nathan Alexander October 3, 2013 0 Comment 1058 views

Cerebrus Capital Management, the private equity firm has emerged as a potential bidder for BlackBerry Ltd (NASDAQ:BBRY), the struggling smartphone maker, said a person in the know. Yesterday, the source said that this investment group was planning on signing a confidentiality agreement to scan BlackBerry Ltd (NASDAQ:BBRY)’s finances. If it puts forth its bid, this will be a counter offer to the $4.7B buyout plan that had been agreed upon last month.

The first bid

On 23 September, BlackBerry Ltd (NASDAQ:BBRY) said that the company had inked a letter-of-intent for the buy-out which amounts to $9.00/share. This offer had come in from Watsa’s Fairfax Financial Holdings. BlackBerry Ltd (NASDAQ:BBRY) is still able to consider any other bids that may emerge.

The Canadian suitor

Fairfax, the Canadian firm is BlackBerry Ltd (NASDAQ:BBRY)’s majority stakeholder and holds around 10% of the company’s stock. Prem Watsa had exited the Blackberry board in August when the company announced that they were planning on a sell-out. Some analysts are of the opinion that the Fairfax buy-out will not reach culmination. The company’s shares have been trading below the $9.99/share offer that has been put forth by Fairfax Financial.

Wednesday’s trading session

In Wednesday’s trading, BlackBerry Ltd (NASDAQ:BBRY) rose by 0.51%. The shares opened at a price of $7.78, which rose to an intraday high of 8.14, and dipped to a close of $7.96. Approximately 54.86 million shares were traded on Wednesday while an average volume of 28.02 million shares were traded over a 30 day period. The 52-week low of the company’s shares is $7.46 and its 52-week high is $18.32. The company has a market capitalization of $4.18 billion.

BlackBerry Ltd (NASDAQ:BBRY) was previously Research In Motion Limited. It designs, manufactures, and markets wireless solutions that are used across the global mobile communications market

About Nathan Alexander

Nathan Alexander holds bachelor’s degrees in Journalism and European Studies from Boston University. Nathan reports round up the day’s business and financial market news and include keynote interviews with major business players and updates on Asian, European and US stock markets. He has interviewed heads of leading European banking institutions such as European Central Bank President Jean-Claude Trichet and HSBC Chairman Stephen Green, and CEOs from the business world including Microsoft founder Bill Gates, Virgin Chairman Sir Richard Branson and former Porsche President and CEO Dr Wendelin Wiedeking.

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