The venture capital tycoon known as the 'Warren Buffett of Canada' is currently emerging as the foremost bidder for BlackBerry. Analysts said the probability of a private equity buyout for BlackBerry is high.
Prem Watsa, chairman and chief executive officer of Toronto-headquartered Fairfax Financial Holdings, quit from the smartphone maker's board last Monday. Watsa joined BlackBerry seven months ago. He is now expected to outline BlackBerry's stock market exit.
Watsa is BlackBerry's biggest stockholder. He spent an estimated USD880 million for the company when he bought 10% of BlackBerry's stocks at an average price of USD17.
The stockmarket value of Watsa's Fairfax was USD8.3 billion which is greater than BlackBerry's worth. The Waterloo, Ontario-based company collapsed from a pre-credit crisis height of USD55 billion to USD6 billion today.
"Hearing the announcement from BlackBerry accompanied by Prem's departure from the board should indicate something will happen this time on the strategic front," BCV Financial's portfolio manager, Todd Johnson, said. "We have a lot of respect for the investment acumen and long-term track record Prem Watsa has established at Fairfax."
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