Game Over Blackberry: Company Abandonds Sale Will Replace CEO, Globe And Mail Reports
Just over a month ago, when we shared our cynical view on the “hopium” inspired LBO of Blackberry, we commented as follows: “In other words an LBO, one which however has not only one but many outs: “There can be no assurance that due diligence will be satisfactory, that financing will be obtained, that a definitive agreement will be entered into or that the transaction will be consummated.” Which means that once the buyers figure out the potential disaster on the books, expect the final price (if any) to be revised lower as one after another MAC clause is triggered.” Not even we were right: as it turns out moments ago, the Globe & Mail reported that having looked at the BBRY, not only will the price be revised lower, but the “purchase” price will be eliminated altogether as any deal is now dead, the company will do a convert offering instead and deadpan CEO Torsten Heins is history.
BLACKBERRY’S PLAN TO GO PRIVATE FAILS, STOCK CRASHES
BlackBerry shares are down 12% today.
Early in the day, news broke that the company’s deal to go private had fallen through, and CEO Thorsten Heins was out of the company.
BlackBerry later issued a press release confirming the news.
Read more: http://www.businessinsider.com/blackberry-crashes-2013-11#ixzz2jhMWvunq
BLACKBERRY CEO THORSTEN HEINS IS OUT
Official BBRY PR: