As beleaguered smartphone maker Blackberry Ltd begins to contemplate a sale of its holdings, Reuters reported that the success of any deal would rest in the hands of Prem Watsa. The Canadian billionaire's Fairfax Financial Holdings Ltd is Blackberry's largest shareholder. Reuters reported that serious bidders would want to ally with Watsa as he could participate in a private equity transaction, or influence shareholder sentiment.
Toronto Head of Securities and Mergers and Acquisitions Group of Fasken Martineau Richard Steinberg agreed. "I would imagine that if Fairfax says they are against a particular deal, that would carry a lot of weight, beyond just the 10 percent that they control," he said. Watsa had already resigned from the Blackberry Board when the firm announced the contemplation of a possible sale. The billionaire said he stepped down because of a potential conflict of interest.
Reuters said that it was still too early to determine who the serious bidders would be should Blackberry decide to sell. Sources knowledgeable of the situation, however, said private equity firms like Carlyle Group and KKR & Co would be interested.
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