This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

The Deal: Selling BlackBerry Will Be Just As Hard As Selling BlackBerrys

Stocks in this article: BBRY

Faucette, in an earlier note after the strategic review announced, pinned a more realistic purchase price with private equity backing at between $8 and $10 per share, so about $5 billion at the high end. That sinks to $6 per share if Fairfax can't get private equity to go along for the ride. 

And the analyst also pointed out that despite the fact that BlackBerry has $2.8 billion in cash on its books, it also disclosed in a Securities and Exchange Commission filing at the end of June that it had $5.3 billion in off-balance sheet purchase obligations, money that would mostly have to be paid if there is something other than a liquidation scenario in the works.

But there is one strategic acquirer reportedly talking to BlackBerry about a possible bid: China's Lenovo Group

While Lenovo is primarily a PC maker, it is also stepping into the smartphone business, especially in emerging markets on the lower end of the price scale. 

That marriage makes some sense, one industry source said.

A Lenovo spokesman said the company doesn't comment on speculation.

The man chosen to lead BlackBerry's special committee does seem well positioned for the task, whichever bidders come knocking. Timothy Dattels is a partner at TPG Capital LP, focusing on Asian investing. Before he joined the PE firm, he was with Goldman Sachs  (GS), heading up banking for Asia ex-Japan. 

Bonus points: Dattels is a native Canadian.

Written by Paula Schaap.

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,387.21 -291.49 -1.65%
S&P 500 2,029.55 -27.54 -1.34%
NASDAQ 4,681.4970 -90.2660 -1.89%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs