Fairfax having difficulty in funding for Blackberry offer - sources
According to several sources cited by Reuters, Fairfax Financial Holdings Ltd has been facing difficulties procuring funds to finance its USD4.7 billion buyout of Blackberry Ltd. The sources also disclosed that sevetal financial institutions declined to participate over concerns that the Canadian smartphone maker might not be able to turn the company's fortunes around.
Canadian financier Prem Watsa, who is running Fairfax, had been working with Bank of America Merrill Lynch and BMO Capital Markets on a borrowing syndicate, sources said. Watsa's efforts however, was futile at the moment as lenders had not been receptive into putting up the much-needed funding.
In late September, the largest shareholder of Blackberry had extended a tentative USD9 per share offer to buy the firm out. Fairfax had until November 4 to arrange a definitive agreement. As Blackberry was also allowed to consider other offers, several potential bidders were reportedly thinking about putting up their offers for the Canadian firm.
When asked for comment about the report, Fairfax and Blackberry refused to provide statements.