Will Cerebrus Takeover BlackBerry Ltd (NASDAQ:BBRY)?
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