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Business News Sourced Wired

Cerberus shows interest in BlackBerry

Washington, Oct. 3 (ANI): Cerberus Capital Management is speculated to be interested acquiring the sinking Blackberry business, as the private equity firm reportedly sought a confidentiality agreement to examine the company’s internal operations.

BlackBerry has already agreed to a preliminary and conditional offer by Prem Watsa’s Fairfax Financial Holdings in Toronto, but it remains free to seek a better offer.

According to the Fox News, it is not clear if Cerberus’ interest would ultimately lead to a bid for BlackBerry as the firm is known for its investments in distressed companies like Chrysler and ATandT’s yellow pages business.

If BlackBerry agrees to an alternative offer, it would have to pay Fairfax 157 million dollars, while Watsa’s company can walk away without penalty, which intends to bring only its 10 percent holding in BlackBerry to its proposed transaction, valuing the company 4.7 billion dollars.

Soon after Cerberus showed interest in BlackBerry, the Canadian company’s shares picked up and closed at 7.96 dollars, up 0.51 percent, the report added. (ANI)