updated 09:34 am EDT, Thu October 10, 2013
Fairfax may be forced to pay fee
Talks surrounding a potential BlackBerry breakup have reportedly resumed, as Fairfax Financial Holdings is said to have encountered trouble finding funding for its $4.7 billion buyout offer, unnamed sources have told Bloomberg. Advisers from the struggling handset maker are said to have approached companies including Cisco Systems and Samsung, however the potential buyers reportedly expressed interest only in partial assets such as patents or the company's enterprise network.
Fairfax, which already holds a 10 percent stake, stepped in with an offer of $9/share after the stock lost nearly 20 percent of its value in the previous trading day. The group is said to have approached Bank of America and BMO Capital Markets, among other potential investors, however the efforts appear to have failed in raising the entire $4.7 billion necessary to honor the offer.
Some analysts reportedly view a breakup as a better deal for BlackBerry and potential buyers, as the company's patents alone are estimated to be worth as much as $3 billion. Separate estimates of the enterprise network suggest it may fetch more than a billion, and the company still holds $2.6 billion in cash.
Fairfax and BlackBerry have yet to publicly confirm details from the latest report.