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
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.
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