Prem Watsa set to rescue Blackberry in funding deal

by Andrew Roach on September 10, 2013

Since Blackberry revealed in July that were exploring other options into saving the company, it has sparked numerous rumours that private parties could be coming in to save the company.

Well, this could be set to happen in the next couple of weeks as former board member Prem Watsa has reportedly put together a deal which comes with billions of dollars worth of backing.

The move is likely to be carried out through Watsa’s Fairfax Financial Holdings group, who are currently the largest shareholder in Blackberry with a 10% stake in the firm.

There are already rumours speculating that much of the funding has come from the Canadian Pension Plan Investment Board who have been linked to a potential deal over the last few weeks.

As the news over Watsa’s potential takeover bid gathers momentum, it becomes highly likely that Blackberry could soon change hands and even re-enter into the private domain.

This comes just days after the smartphone manufacturer hinted that a deal could potentially be in the works and be completed by the end of the year.

It seems that Watsa could have already been talking with the Waterloo based firm for the last few weeks especially given his links to the firm and being one of the wealthiest investors in Canada.

Alongside that, Watsa stood down as a member of the Blackberry board citing it as a potential conflict of interest paving a way for a deal to go through.

Having invested successfully in several major businesses before, a takeover from Watsa would give the ailing ship of Blackberry now more chance to turn themselves around.

But there has been little word from the smartphone manufacturer who has kept extremely tight-lipped around the happenings surrounding any sort of deal.

However, the company shares have shot up over the past day or so with them rising 3% on the NASDAQ on Monday.

Considering the ties that Prem Watsa and Fairfax have to Blackberry, it seems that they have a very credible that could certainly help Blackberry get back on their feet.

However, the smartphone manufacturer will need more than billions of dollars to return them to the global behemoth that they once were.

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Written by: Andrew Roach Follow by: RSS, Twitter, Facebook, or YouTube

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