Fortunes of Overall Canada Stocks Reflected In Blackberry Shares Moves


Canada stocks spent most of Monday in positive territory, but outside of one brief period mid-afternoon when the index did get to be over 20 points higher, they never managed to attract a sustained period of buying. To a large extent their fortunes reflected that of embattled smartphone maker BlackBerry (BB.TO, BBRY), which was the most actively traded stock and the biggest news story of the day once again.

Blackerry on Monday signed a tentative deal to be bought by a consortium - which is being led by its biggest shareholder Fairfax Financial Holdings (FFH.TO), but we do not know yet who else is in it - for US$9 a share, valuing the company at near US$4.7 billion. FFH - which controls about 10% of Blackerry - closed up 1.1% at $420.45, off a session high of $421.89 hit late morning but it did see some late buying. Blackberry closed down flat at $9.08, well off a session high of $9.45.

FFH is led by Prem Watsa, who recently resigned as a director of the telco amid much speculation that he was, indeed, putting together an offer.

The latest news comes after Blackberry last Friday said it will report a quarterly loss of nearly $1 billion when it reports this Friday coming.

Onlookers like UBS and Daniel Stecich at TJM Institutional Services do not expect to see someone else step in with a higher bid for Blackberry, despite the fact that there is a window for the company to seek more money.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing , Commodities

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