Reticent Wall St suggests a new course for BlackBerry
Doubts about the $4.7bn (£2.9bn) fire sale of Blackberry were evident on Wall Street yesterday as the ailing smartphone maker's shares remained stuck below the price offered by its largest shareholder, with experts suggesting a break-up of the business could now be the best option for the Canadian firm.
Pierre Ferragu, a senior analyst at Bernstein in London, said the private equity firm Fairfax's offer to buy BlackBerry was "a letter of intent agreement" and there were "material" risks it would fail.
The $9-a-share takeover approach "will turn into a definitive offer only after due diligence and once financing is secured", Mr Ferragu said, as Blackberry's shares fell by nearly 3 per cent to $8.57 in mid-afternoon trading on the Nasdaq index.
"Fairfax doesn't seem to have entered any formal obligation to complete the deal," he added, urging clients to sell BlackBerry shares, which have dived from a 2008 peak of $149 as it has fallen far behind rivals such as Apple and Samsung.
Roberta Cozza, a director at research firm Gartner, suggested BlackBerry's patents, business services and its free BlackBerry Messenger (BBM) text-messaging platform would all appeal to different buyers. "I think the value is in the different divisions than altogether," Ms Cozza said.
She warned that BlackBerry's phones had now fallen out of favour with consumers to such an extent that it could be impossible to turn around that side of the business.
But the delay before Fairfax made a formal takeover bid meant other buyers could emerge, she said.
newsFormer soldier taped 33 of the animals to the floor and then stamped on them one by one
Michelle Nijhuis' daughter insists (s)he is, and she learnt a valuable lesson on gender in books
Geoffrey Macnab reviews American Hustle, also starring Christian Bale and Bradley Cooper
news Opponents claim it would stop performers such as Beyonce and Madonna appearing on TV
It takes a platoon of chefs, litres of brandy and rum, and almost 100kg of dried fruit
newsThat most ancient of crimes is on the rise, threatening farmers' livelihoods, community trust – and human health
Sun will 'flip upside down' within weeks, says Nasa
Lee Rigby murder: How killers Michael Adebolajo and Michael Adebowale became ultra-violent radicals
Cycle death inquest: Boyfriend hugs driver of 32 tonne tipper truck that killed his girlfriend
Paul Walker death caused by speed alone
Apollo Theatre collapse: Scores injured after ceiling collapses in London's West End
- 1 America's 'virgin births'? One in 200 mothers 'became pregnant without having sex'
- 2 North Koreans are gasping for the truth: Let's give it to them
- 3 Sun will 'flip upside down' within weeks, says Nasa
- 4 Christmas comes early: Justin Bieber is 'retiring from music'
- 5 Cycle death inquest: Boyfriend hugs driver of 32 tonne tipper truck that killed his girlfriend
- < Previous
- Next >
iJobs Money & Business
£55000 - £120000 per annum: Pro-Recruitment Group: The Financial Services Tran...
£600 - £700 per day: Harrington Starr: Client based in West London is looking ...
£80000 - £120000 per annum + Benefits: Pro-Recruitment Group: Risk - Delivery/...
£Negotiable: Citifocus: This is a new role carrying responsibility for a numbe...