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September 23, 2013 09:45 pm GMT

BlackBerry Signs Letter Of Intent To Go Private For $9 Per Share In Deal Valued At $4.7 Billion

Today BlackBerry announced a $9 per share offer for its outstanding stock, a deal worth around $4.7 billion. The $9 per share price is a slight premium over its current stock price, which traded at $8.23 before it was halted pending the news. BlackBerry had declined more than 5% on the day, before the news was released.Fairfax Financial, who offered the $9 per share deal, already owns around 10% of the company’s stock. BlackBerry’s board has approved the transaction, and a letter of intent has been signed. This feels like a pretty much done deal. However, the board is open to rival offers provided that they are “alternatives superior to the present proposal from the Fairfax consortium.”Fairfax will pursue funding for the deal from, according to the release, Bank of America Merrill Lynch, and BMO Capital. There is a kill fee of $0.30 per share if BlackBerry backs out and accepts a different. BlackBerry had around $2.8 billion in cash and equivalents at the end of its most recent quarter. That, paired with whatever value its intellectual property might retain means that the value of its business operations is vanishingly small.The $9 per share price for BlackBerry is less than a 10% premium on its closing price, calculated on a very, very bad day for the company’s stock. Expect some investors to be less than enthused to see the company exit for so little.  

Original Link: http://feedproxy.google.com/~r/Techcrunch/~3/ly4n5CNlhRw/

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