Fairfax might not be able to raise the funds for BlackBerry bid
on 1 Nov 2013 07:17 pm EDT
That's according to a new report coming out of Reuters who's sources familiar with the matter claim several large banks are reluctant to participate due to the concerns that BlackBerry will not be able to reverse its rapidly declining fortunes. While Fairfax has Bank of America Merrill Lynch and BMO Capital Markets on board, several other large lenders are said to of have passed on the deal.
That's certainly not a good thing for Fairfax but as we already know, Mike Lazaridis and Doug Fregin, co-founders of Research In Motion, may jointly bid for BlackBerry with the help of private equity firm Cerberus Capital Management LP. If the latest information is to be believed, they'll also be joined by Qualcomm though Reuters notes that it's not clear how they'd overcome the same issues Fairfax is facing when it comes to having the funds.
At this point, a lot of names have come into the mix and as Reuters quite understandably notes, no one they reached out for comment has anything to say on the matter so we're all just left waiting to see how things pan out.