Globe: Fairfax seeking $1 billion U.S. from other investors for BlackBerry takeover

Fairfax said Monday it's leading a group that would buy the Canadian smartphone maker

TORONTO – The Globe and Mail reports that Fairfax Financial Holdings Ltd. (TSX:FFH) is seeking more than US$1 billion from other investors to help fund a takeover of BlackBerry Ltd. (TSX:BB).

Fairfax said on Monday that it’s leading a group that would buy the Canadian smartphone maker but didn’t disclose publicly how much other investors would contribute or identify any of its potential partners.

The Globe, citing unidentified sources, said that as of Tuesday only one pension fund is seriously considering joining the Fairfax-led consortium — the Ontario Teachers Pension Plan, one of Canada’s largest institutional investors.

The pension plan declined to comment for the Globe article and has declined to comment on previous reports that link it to deals before they’re announced.

Fairfax’s proposal values BlackBerry at US$4.7 billion but makes a number of conditions that would allow the Toronto-based financial group to walk away from the deal.

The Globe report says Fairfax is pitching a deal that would be financed with $3 billion of bank loans, $1 billion of equity from institutions and Fairfax’s current 10 per cent stake in BlackBerry, worth about $470 million.

Looking for more?

Get the Best of Maclean's sent straight to your inbox. Sign up for news, commentary and analysis.