Usually when a company is up for sale with a ton of assets, pension funds usually get in on the action as it’s a good investment. Companies like it because pension funds have lots of cash to invest. But according to The Globe And Mail, that doesn’t seem to be the case with BlackBerry. Fairfax Financial Holdings Ltd. holds the largest amount of shares in the struggling smartphone maker. They’ve been trying to get others to jump on board to buy the company. But:
It has been a tough sell so far. Sources say none of the big funds have jumped on board with the idea, amid growing skepticism about the company’s ability to turn around falling sales. Fairfax is also talking to potential buyers for its 9.9-per-cent stake.
And:
Fairfax has made overtures to a number of pension plans, private equity firms and technology companies to review a variety of strategic options including an acquisition. But the firm is still debating whether it will ultimately participate in a buyout of BlackBerry or whether to sell its stake in any deal. Its preference is to find an industry player – another tech company – to buy BlackBerry, sources said.
People familiar with the discussions said none of Canada’s major pension plans is yet prepared to join a takeover consortium.
That’s a serious lack of confidence in the future of the company. Even though it has a pile of patents that must be worth gold, nobody wants to get their hands on that treasure trove. That is not good.
One can only hope a white knight rides in to save the day.
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Pension Funds Cool To BlackBerry: Report
Usually when a company is up for sale with a ton of assets, pension funds usually get in on the action as it’s a good investment. Companies like it because pension funds have lots of cash to invest. But according to The Globe And Mail, that doesn’t seem to be the case with BlackBerry. Fairfax Financial Holdings Ltd. holds the largest amount of shares in the struggling smartphone maker. They’ve been trying to get others to jump on board to buy the company. But:
It has been a tough sell so far. Sources say none of the big funds have jumped on board with the idea, amid growing skepticism about the company’s ability to turn around falling sales. Fairfax is also talking to potential buyers for its 9.9-per-cent stake.
And:
Fairfax has made overtures to a number of pension plans, private equity firms and technology companies to review a variety of strategic options including an acquisition. But the firm is still debating whether it will ultimately participate in a buyout of BlackBerry or whether to sell its stake in any deal. Its preference is to find an industry player – another tech company – to buy BlackBerry, sources said.
People familiar with the discussions said none of Canada’s major pension plans is yet prepared to join a takeover consortium.
That’s a serious lack of confidence in the future of the company. Even though it has a pile of patents that must be worth gold, nobody wants to get their hands on that treasure trove. That is not good.
One can only hope a white knight rides in to save the day.
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This entry was posted on September 11, 2013 at 9:30 am and is filed under Commentary with tags BlackBerry. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.